From Foundation to Technological/Capital Cooperation with Sumitomo Electric Industries, Ltd.
In the mid-Meiji period, many electric power companies were established across the nation. In 1897, an electric power company named “Yokkaichi Electric Light, Ltd.,” was founded in Yokkaichi, Mie prefecture. In February, 1917, Kuki Monshichi (VIII) as President of “Yokkaichi Electric Light, Ltd.,”, and Ito Kozaemon (VII) as President of Yokkaichi Bank, founded “Tokai Electric Wire Works” as the predecessor of Sumitomo Wiring Systems, Ltd., reflecting their firm belief in the future potential of the electric power business, and to their contribution to such a business by supplying electric wires. In December, 1917, they reorganized the company to establish “Tokai Electric Wire Ltd.” and started manufacturing cotton-coated wire called “Tokyo Wire” as their major product. They soon launched an integrated production system, starting with melting copper through the introduction of the reverberatory furnace and rolling equipment, and further opened sales offices in Tokyo, Osaka, Fukuoka and Kokura to expand their business.
In 1931, the company saw a downturn in corporate results and faced a threat to its survival caused by a recession stemming from the reaction to the end of World War I, and disorder resulting from the Great Kanto Earthquake.
In October 1931, facing severe financial difficulties, they created a joint business with “Sumitomo Electric Wire & Cable Works " (later Sumitomo Electric Industries) through the intermediary “Yokkaichi Soko" (later Japan Transcity Corporation) by transferring the majority of shares as well as entrusting management and sales to the other party. With this cooperative relationship, they received guidance concerning sales and engineering from Sumitomo Electric Wire & Cable Works, and further received copper as raw material. It was 14 years after its foundation that the company became an affiliate of Sumitomo Densen Seizo-sho and made a new start.
- Overview of the company at the time of its foundation
- Tokyo wire
- Copper melting facility
- Sales office in Osaka
- Sumitomo Electric Wire and Cable Works