Furukawa Electric to Launch Optical Fiber Preforms JV in China

Furukawa Electric announced on Friday the firm establishes Chinese joint venture to make optical fiber performs. The wholly owned optical fiber and cable making US subsidiary, OFS Fitel and Chinese major optical fiber and cable maker, Hengtong Optic-Electric agreed to establish the joint venture. Furukawa Electric tries to serve the growing demand in China through the production base.

Hengtong Optic-Electric controls 49% of the joint venture, Jiangsu OFS Hengtong Optical Technology with 51% share by OFS. Furukawa Electric transfers state of the art technology, Vaport Axial Deposition (VAD) to make optical fiber preforms.

The joint venture will serve mainly for Chinese buyers. Furukawa Electric will use the optical fiber preforms at the wholly owned optical fiber and cable making subsidiary in Xian, Shaanxi. The joint venture partner, Hengtong group apparently uses the preforms at the group plant.

Furukawa Electric now ships the preforms from Japanese Mie plant to Xian plant. With the new joint venture, Mie plant can use the reserve capacity to follow other Asian market. The new joint venture is 3rd plant to make preforms for Furukawa Electric after Mie plant and US plant in Georgia.

With the joint venture by Furukawa Electric, all 3 Japanese major electric wire makers have Chinese plant for preforms. Sumitomo Electric Industries already announced joint venture with Futong group while Fujikura announced joint venture with FiberHome.

Fujikura expects world optical fiber market is 180 million kilometers core in 2010, of which China represents around half. Chinese leading optical fiber maker, Yangtze Optical Fiber and Cable is followed by FiberHome, Hengtong and Futong in Chinese market. The Japanese major 3 makers will have joint ventures with the Chinese makers in No.2 group.