$25 million Chinese, Indian joint venture starts fiber production

Feb. 19, 2013

As reported by Cablinginstall.com's sister site, Lightwave, Jiangsu Sterlite Tongguang Fiber Co. Ltd. (JSTFCL), a joint venture of Indian fiber manufacturer Sterlite Technologies and Chinese fiber-optic cable provider Jiangsu Tongguang Communication Co. Ltd. (TGCl), has begun to produce optical fiber itself at its facility in Haimen, Jiangsu Province, China.

"This joint venture leverages the strengths of two great companies to offer high-quality and competitive optical fiber to our China customers," said Pravin Agarwal, whole-time director at Sterlite. "Additionally, it strategically positions both companies for global growth in the telecommunications segment."

See also: OFS, Sterlite settle lawsuit

The factory, which the JV parents invested $25 million to set up, is capable of manufacturing 5 million km of fiber annually and employs 90 people. It will target fiber-optic requirements in China, which the partners say amounts to more than 100 million km a year.

The two companies created the JV in 2010, with Sterlite the majority partner at 75%. A bigger presence in China is one reason Sterlite is participating in the venture. TGCl’s fiber cable manufacturing expertise and market reach in China should help achieve that goal, the companies believe.

"This partnership combines the expertise of both companies to become a technology leader for the global market," said Tang Jinming, chairman of Jiangsu Tongguang Communication. "We look forward to continued cooperation and innovation with Sterlite to provide our customers the best in class products at competitive prices."

More: Sterlite to double fiber capacity to 12 million km

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