OFS forms joint venture to produce optical fiber preforms in China

June 24, 2010
The joint venture company is be named Jiangsu OFS Hengtong Optical Technology Co., Ltd.

NORCROSS, Ga. -- OFS, a wholly-owned subsidiary of Furukawa Electric Co., Ltd., and the Hengtong Optic-Electric Co., Ltd. have agreed to form a joint venture company in China to manufacture, market and distribute optical fiber preforms used in the production of optical fiber.

As part of the agreement, OFS, as a U.S. designer, manufacturer and provider of optical fiber and related products, will bring the latest Vapor Axial Deposition (VAD) optical fiber preform technology and expertise to the greenfield operation. Hengtong, as a leading Chinese optical fiber and cable company, brings significant optical fiber draw and cable manufacturing expertise in the China market. The scope of the joint venture is preform manufacture and R&D.

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The joint venture company is be named Jiangsu OFS Hengtong Optical Technology Co., Ltd. According to a press release, this formal joint venture cooperation is the fruition of a broader commercial cooperation which has been developing over the last three years between the companies.

"China is an important market for us as it is the largest optical telecommunications market in the world. Continual FTTx and 3G rollouts and the supporting optical network are part of the government's long term view for a globally competitive telecommunications infrastructure," said Dr. Timothy F. Murray, Chairman and CEO of OFS. "This joint venture represents a significant strategic investment in China. OFS and Hengtong Group are an excellent match with a mutual commitment to serve customers in the highly competitive global optical telecommunications industry."

"Preform technology represents the core value in the optical fiber industry, and both parties see this joint venture as another important step toward further cooperation to better serve their customers," added the president of Hengtong, Mr. Gao An Min.

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Terms of the joint venture agreement were not disclosed. The joint venture is subject to normal closing requirements, including necessary regulatory approvals.

For more information, visit www.ofsoptics.com.

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