Furukawa Electric invests ¥100 bn in HVDC cable production with government subsidy

Furukawa Electric Co., Ltd. will invest approximately ¥100 billion in new facilities for HVDC cable production, targeting operation by 2030. This strategic move, approved by its board of directors on October 8, 2025, aligns with the company's goal of addressing social issues and contributing to carbon neutrality by enabling 500kV-class direct current power transmission. The new manufacturing lines will be established at the company's existing locations, including Futtsu City, Chiba Prefecture.

The investment is partially supported by Japan's Ministry of Economy, Trade and Industry’s GX Supply Chain Construction Support Project, with Furukawa Electric receiving a maximum subsidy of approximately ¥30.7 billion. This subsidy covers one-third of the eligible expenses for the project, which aims to establish a production capacity of 200km per year for 500kV-class HVDC cables. The subsidy issuance period runs from November 2025 to December 2029.

Furukawa Electric expects the impact on consolidated financial results for the fiscal year ending March 31, 2026, to be minor. The company emphasized its commitment to the renewable energy business, aiming to contribute to carbon neutrality and enhance group profitability.