Fujikura Gains Strong Offshore Optical Fiber Demand

Fujikura operates full capacity to make mother optical fiber preform at Sakura plant in Chiba, Japan to meet strong offshore demand. Fujikura’s joint venture in China, Fujikura FiberHome Opto-Electronics Material Technology started mass production in June 2011 to operate at full capacity of 5 million kilometers of fiber core (kmc) per year.

Sakura plant has apparently annual 25 million kmc of output capacity. The plant was damaged at a part of the facility by the major earthquake in March 2011. The plant resumed the part of the production in early April but operated under the capacity for April-September 2011 due to limited availability of power supply. The plant has operated at full capacity since October 2011.

Fujikura FiberHome Opto-Electronics Material Technology, of which Fujikura controls 60%, also operates at full capacity while the Sakura plant keeps full capacity operation. The plants meet growing demand for the optical fiber worldwide.

World optical fiber market is estimated to be near 200 million kmc, of which China represents around a half. Japanese optical fiber makers have to ship in optical fiber preform for China due to antidumping duty by Chinese government.

Sakura plant now has reserve capacity to export optical fiber to other countries than China when Fujikura FiberHome Opto-Electronics Material Technology reached full capacity. Fujikura can export optical fiber, which has higher processing value than perform, and assemble into optical fiber cable at the demand area.

Fujikura targets 20% of world market share for optical fiber in fiscal 2015 ending in March 2016. The firm targets 38 billion yen of the sales in F2015 compared with estimated 30.1 billion yen in F2011. The firm expects the offshore sales rate will exceed 50% when the domestic market decreases.