Environment & Energy
22VISION Ideal state
We aim to be a total supplier of environmental energy-related products and systems on a global scale
Overview of Business
The Sumitomo Electric Group began producing electric cables in 1908. We started with copper wires and have steadily progressed from low voltage to ultra-high voltage in our electric wire and cable business. A particularly foundational area of our copper wire business has been our high-voltage electric wire business, where we have built a business base and track record that leads Japan’s industry through the completion of a series of major projects such as the production and laying of the world’s first long distance main line with 500 kV XLPE cables and the world’s first submarine power line with a 500 kV DC Oil-Filled cable.
We have continued to build a stronger global presence, drawing on our strengths such as diverse high-value product families and associated services, project-planning expertise, overall capabilities involving affiliate companies in the heavy electrical machinery and engineering fields (Nissin Electric Co., Ltd. and Sumitomo Densetsu Co., Ltd.) and end-to-end system development from raw material to finished product. Currently, the technical expertise of our group is essential for the construction of new energy systems in line with trends such as international grid interconnection projects, primarily in Europe, infrastructure development in emerging countries, increasing use of renewable energy and widespread use of electric vehicles. We will continue to use this technology as a base as the building of energy infrastructure progresses.
VISION 2022 Mid-term Management Plan: Segment Strategy
FY2020 Results
Due to the impact of COVID-19, demand for automotive products such as magnet wires and metal porous material for batteries used in electric vehicles (Celmet) fell, and projects for power cables and power line construction were delayed. Also, due to a decrease in industrial electric wires for the construction and electrical appliance markets and in electrical installation work at Sumitomo Densetsu Co., Ltd., net sales were 634,191 million yen, a decrease of 78,352 million yen (11.0% year-on-year), Operating income decreased by 2,090 million yen to 25,024 million yen due to the decrease in sales.
Priority initiatives for FY2021
●In the area of power cables, we will continue to receive orders for large-scale overseas projects, domestic demand for equipment replacement, and renewable energy projects while also focusing on cost reduction, quality improvement, new product development, and strengthening of project management.
●With respect to rectangular magnet wires for motors used in electric vehicles, we will continue to expand our global production capacity to meet increasing demand.
●We will strive to further increase orders by leveraging the collective strength of the Group, including Nisshin Electric Co., Ltd. and Sumitomo Densetsu Co., Ltd.
Examples of our initiatives
PLC String Monitoring System
The adoption of renewable energy is accelerating in an effort to realize a decarbonized society. Photovoltaic power generation systems, which are especially popular and can operate for more than 20 years after installation, and in order to maintain stable power generation over a long period of time, immediate detection and response to problems is extremely important, and “monitoring systems” are generally installed to detect abnormalities.
Sumitomo Electric has developed a monitoring system that uses AI*1 to determine abnormalities in the measured string power values and notifies the cause of the abnormality according to the degree of urgency. The Company’s monitoring system uses PLC*2 technology, which uses existing electric power lines as communication lines, eliminating the need to install additional communication lines when implementing the monitoring system and thus enabling easy installation at existing power plants. Through the use of the abnormality detection and notification system developed this time, it is possible to respond to abnormalities related to power generation at an early stage, thereby contributing to reducing the operation and management costs of photovoltaic power generation plants and maximizing the amount of power generated.
*1 AI: Artificial Intelligence
*2 PLC: Power Line Communication