 |
 |
| NEC Headquarters in Minato - ku, Tokyo (center) |
|
NEC became linked with Sumitomo through copper wire. In 1919, Western Electric made a proposal to Iwadare to form a joint U.S. - Japanese electric - cable venture. Innovations in switching technology required cables with better insulation, and NEC was already producing high - quality cable under technical guidance from Western Electric.
But Iwadare himself was not keen on the proposal. Not being a dedicated manufacturer of electric wire, NEC did not have a source for copper supplies, making it difficult for the company to procure the metal. Further, he thought that turning management resources toward cable would weaken NEC’s strength, which had been built on telephones and switching equipment. In today’s language, we would say that he was focusing on the company’s core competence.
As an alternative partner, Iwadare put forward Sumitomo Electric Wire & Cable Works (now Sumitomo Electric). Joining forces with the House of Sumitomo, one of Japan’s most powerful and trusted industrial conglomerates, would no doubt benefit both NEC and Western Electric. In October 1920, NEC and Sumitomo Electric Wire & Cable Works formed a cross - shareholding relationship, and NEC’s long - distance cable business was transferred to Sumitomo Electric Wire & Cable Works. |
