OFS and the Hengtong Optic-Electric have announced to establish a new joint venture (JV) organization in China to manufacture and distribute optical fiber preforms. The new company will be named as Jiangsu OFS Hengtong Optical Technology. The joint venture is the realization of a commercial teamwork between the two companies over the past three years.
Under the agreement, OFS will bring the Vapor Axial Deposition (VAD) optical preform technology and its industry expertise to the greenfield operation, while Hengtong will bring its optical fiber and cable production knowledge to the Chinese market. Through the joint venture, both the companies have planned to manufacture preforms and conduct research and development projects. Terms of the agreement were not revealed. The collaboration is subject to necessary regulatory approvals and regular closing requirements.
Hengtong’ President, Gao An Min, stated that the perform technology presents a significant value in the fiber optics sector, and both the companies consider this collaboration as a major step towards serving their clients in a better way.
OFS’ CEO and Chairman, Dr. Timothy F. Murray, said that China presents a major market for the company, and the government’s long-term plan comprises 3G and FTTx rollouts, including the supporting optical network for advanced telecommunications infrastructure. He added that the collaboration marks a major investment in China.
Source: http://www.ofsoptics.com