Essex Magnet Wire, a division of Superior Essex Inc., and Furukawa Electric Co., Ltd. ("Furukawa Electric") announced their intent to form a joint venture to supply a new type of winding high-voltage wire (HVW) primarily to the automotive industry throughout the European Economic Area.

The joint venture will manufacture, market, sell, and distribute HVWs that are used in electrical-driving motors, generators, and reactors for automotive vehicles.

This endeavor combines the global resources and technical expertise of Essex Magnet Wire and Furukawa Electric, i.e., Essex Magnet Wire's European sales force and manufacturing operations and Furukawa Electric's relevant technology, which Furukawa Electric will license to the joint venture, to supply a new type of HVW to automotive customers in Europe.

Based in Bad Arolsen, Germany, the joint venture will operate under the name Essex Furukawa Magnet Wire Europe. Although Essex Magnet Wire will be the majority shareholder of the joint venture, the parties expect to operate the joint venture in the spirit of a true commercial partnership.

The formation of the joint venture is expected to close in the first quarter 2017, following the execution of definitive agreements and the receipt of required regulatory approvals.

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