June 12, 2001 Corning Inc. (www.corning.com) announced that its wholly owned subsidiary, Corning International Corporation, has entered an agreement to acquire 50 percent of Aberdare Fiber Optic Cables (www.aberdare.co.za), a South African manufacturer of optical fiber cable for the sub-Saharan telecommunications market. Corning Cable Systems (www.corningcablesystems.com) will manage Corning's interest in the equity company. The transaction will be completed in two stages over the next two years.
"This is an important equity relationship for Corning Cable Systems," said James R. Cooke, senior vice president, strategic planning and development for Corning Cable Systems. "In the short term, it will allow our company access to major end users who are not currently serviced, while establishing a strong presence over the long term to support the growing telecommunications demand in South Africa and other countries in sub-Saharan Africa."
Corning Cable Systems will appoint Aberdare Fiber Optic Cable's marketing and commercial executive, while Aberdare Cables (Pty) Ltd., the other equity owner, will appoint the chief executive officer. Corning will continue to supply 100 percent of the venture's fiber requirements. Other terms of the shareholders' agreement were not disclosed.