The Energy and Infrastructure Business consists of three sub-segments: Construction, Power, and Seismic Isolation. We handle power cables of categories extra-high voltage and higher electric wire cables for construction and electric sales, and connector components as products, and deliver them to electric power companies, electric equipment manufacturers, and construction companies. We are also responsible for installation and maintenance, providing comprehensive solution services. In particular, the high-voltage power cable connector "SICONEX" has received high praise and has grown to command an overwhelming market share in its sector. We will continue to provide safe and reliable products and solutions to meet growing electricity demand and contribute to building resilient power grids.
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Chiefs of Segments Message
Energy and Infrastructure Business Segment
Communication and Components Business Segment
From fiscal year 2025, the Electrical Equipment and Components Business and the Communication and Industrial Devices Business were integrated, launching the new Communication and Components Business structure. The goal is to nurture this as a second pillar alongside the SWCC Group's core Energy and Infrastructure Business. The key to the growth of this business is synergy with TOTOKU Inc., which has become a Group company. In particular, we are working to integrate products and technologies in the components field, aiming to gain market share globally and contribute to sales and profits.
～Growth Strategy for the Energy and Infrastructure Business～
■Market Forecast for FY2025 to FY2026
| Construction | Business Environment |
・While stable demand is expected, demand adjustments are anticipated due to factors such as delays in major projects caused by workstyle reforms at construction sites and reviews of construction plans due to rising material costs. |
|---|---|---|
| Measures | ・Improve capital efficiency and increase cash generation by providing new cross-Group sales services and promoting logistics reforms | |
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Electric power |
Business Environment |
・Power grid reinforcement, renewable energy, datacenters, and semiconductor-related sectors continue to perform well |
| Measures | ・Expand sales by fully utilizing SICONEX production capacity. We are making an additional 2 billion yen investment to expand production at the Sagamihara Plant. |
■Basic strategy
| Construction | ・Raising the level of profitability with differentiated products (construction burden-reducing cables) ・Improve capital profitability by promoting DX management |
|---|---|
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Electric power |
・Maximize contributions from increased investment in SICONEX production capacity for high-voltage power cable connectors ・Promote installation workforce training ・Human resource capabilities are the foundation for business evolution (Smart Stream Business) |
■Progress of Growth Business
Second-Phase Capacity Expansion Investment for SICONEX®
Amid growing demand for aging equipment replacement and grid upgrades driven by the shift to a decarbonized society, we are making a new ¥2 billion investment (Phase 2). Sales are targeted to reach 220% of FY2023 levels by FY2026.
～Growth Strategy for the Communication and Components Business～
■Market Forecast for FY2025 to FY2026
| Communications | Business Environment |
・Steady demand continues for construction-related applications including data centers, as well as for high-speed in-vehicle communication cables due to the demand for generative AI |
|---|---|---|
| Measures | ・Global expansion of the intermittent adhesion ribbon e-Ribbon through building partnerships in Europe and the United States ・Expansion of high-speed in-vehicle communication cables FLANTEC |
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Mobility / Semiconductor |
Business Environment |
・For mobility, sluggish performance is assumed due to delayed adoption of BEV ・For semiconductors, strong performance driven by solid demand for servers for AI |
| Measures | ・Further acceleration of downstream strategy in the seat heater wire and semiconductor test probe pin fields through TOTOKU becoming a Group company |
■Basic strategy
| Communications | ・Global expansion of intermittent adhesion ribbon e-Ribbon ・Promotion of high-speed communication cable FLANTEC for automotive applications |
|---|---|
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Mobility / Semiconductor |
・Maximizing synergies from TOTOKU becoming a Group company (further accelerating downstream strategies in the seat heater wire and semiconductor test probe pin fields) |
■e-Ribbon®
e-Ribbon is an ultra-fine, high-density optical fiber using intermittent adhesive ribbon. Our proprietary manufacturing method enables a large number of optical fibers to fit within a thin cable. With superior flexibility and workability, it greatly contributes to improving the efficiency of cabling installation work. Furthermore, by utilizing our unique manufacturing technology that minimizes loss even during high-speed production, we will continue to respond to the rapidly expanding market demand for data centers.
■FLANTEC®
FLANTEC is the SWCC Group's unified brand for LAN cables used in various fields in its communication cable business. We have developed LAN cables for in-building use that are thinner and lighter for high-speed communication, and for industrial use, we have launched LAN cables with enhanced flexibility and superior shield performance to expand our product lineup. For automotive applications, the adoption of in-vehicle high-speed transmission cables--with excellent high-speed performance for vehicle cameras used in ADAS (Advanced Driver Assistance Systems), strong noise resistance, and superior durability--by Japanese automobile manufacturers is expanding. Moving forward, we will continue to develop together with our customers and strive to further improve performance.
■Strategic Significance and Synergistic Effects of TOTOKU Acquisition
Further accelerate expansion into growing business areas and overseas business expansion, and turn the Communication and Components Business into a core business alongside the Energy and Infrastructure Business.
■About the vision for the Communication and Components Business segment
This business segment aims to continuously provide sustainable value in the global market through innovative partnership strategies based on core technologies. For the global expansion of the intermittent adhesion ribbon e-Ribbon, we are forming partnerships with overseas cable manufacturers and developing a business that adds value to partner products by leveraging our core technologies.
We are also expanding into the mobility field based on technologies cultivated in the high-speed LAN market, providing cable solutions suitable for image transmission from in-vehicle cameras and high-speed data transmission between ECUs to help build the communications network environment required for advanced driver assistance systems.
In this business segment, we aim for further expansion of the communications business, promote synergy creation with TOTOKU, and advance the transformation into a solution-proposing company.
■We aim to firmly establish the Communication and Components Business as the second pillar of growth by expanding sales of high value-added products both in Japan and overseas, and by maximizing the synergies with TOTOKU.
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