Fujikura Establishes Optical Fiber Perform JV in China

Fujikura announced on Monday the firm establishes a joint venture “Fujikura FiberHome Opto-Electronics Material Technology” in Wuhan, China in June 2009 with FiberHome Technologies of China. The JV will produce optical fiber perform. The capital for the JV is 396 million yuan (approximately 5.9 billion yen), 60% shared by Fujikura and 40% by FiberHome Technologies.

Fujikura expects for optical fiber business growth in China and decided the JV establishment. Fujikura becomes to organize integrated production network from optical fiber perform to optical fiber cable in China.

This is the second case that Japanese electric cable maker starts optical fiber perform production in China following Sumitomo Electric Industries (SEI). SEI concluded a JV contract with Futong Group of China in October 2008. Their JV will start optical fiber perform production in Hangzhou City of Zhejiang Province in September 2010. Japanese electric cable makers have exported optical fiber perform from Japan and manufactured it into optical fiber in China against Chinese antidumping measure.

Global optical fiber market is estimated at around 100 million kilometers of fiber core per annum currently. Japanese market seems around 10 million kilometers of fiber core and Chinese market is 4-5 times of Japanese.