Sterlite and Tongguang Joint Venture in China Starts Production of Optical Fiber
HAIMEN, China and PUNE, India, February 18, 2013 /PRNewswire/ --
Jiangsu Sterlite Tongguang Fiber Co. Ltd. (JSTFCL), the joint venture (JV) company formed between Sterlite Technologies Limited (Sterlite) and Jiangsu Tongguang Communication Co. Ltd. (TGCl), today announced the commencement of production of optical fiber at their new facility located in Haimen, Jiangsu Province, China.
Sterlite is a leading global provider of transmission solutions for the telecom and power industries, while TGCI is a China-based manufacturer of optical fiber cables as well as power transmission wires and cables.
The greenfield factory has been set up with an investment of around US $25 million. China with a total annual demand of optical fiber of more than 100 million km is an extremely important market for Sterlite Technologies and this strategic investment will help the Company establish a stronger foothold in the market. While Sterlite brings expertise in optical fiber technology, TGCl brings significant fiber cable manufacturing expertise and market reach in China. With the benefits of extended product lines, Jiangsu Sterlite Tongguang Fiber Co. Ltd. would make it faster, easier and more cost-effective for utilities and service providers to build new age communication infrastructures.
"This joint venture leverages the strengths of two great companies to offer high-quality and competitive optical fiber to our China customers," said Pravin Agarwal, Whole-time Director, Sterlite Technologies Limited. "Additionally, it strategically positions both companies for global growth in the telecommunications segment."
"This partnership combines the expertise of both companies to become a technology leader for the global market," said Tang Jinming, Chairman of Jiangsu Tongguang Communication. "We look forward to continued cooperation and innovation with Sterlite to provide our customers the best in class products at competitive prices."
The first phase of the project, which has started operations, has an installed capacity of 5 million km optical fiber annually and the state-of-the-art facility today provides direct employment to over 90 people.
In November 2010, Sterlite partnered with Jiangsu Tongguang Communication Co. Ltd. (TGCl) to form a joint venture company Jiangsu Sterlite Tongguang Fiber Co. Ltd. (JSTFCL) in Haimen, Jiangsu Province, China to manufacture, market and distribute optical fiber used in the production of fiber optical cables. This was an important milestone for Sterlite becoming a localized player in the largest optical fiber market in the world from being primarily an exporter of optical fiber in that market. The registered capital of this JV is US $10 million and Sterlite is 75% shareholder of the JV.
About Sterlite Technologies Limited
Sterlite Technologies Limited ("Sterlite") [BSE: 532374, NSE: STRTECH], is a leading global provider of transmission solutions for the power and telecom industries. Equipped with a product portfolio that includes power conductors, optical fibers, telecommunication cables and a comprehensive telecom systems / solutions portfolio, Sterlite's vision is to 'Connect every home on the planet'. Sterlite is also executing multi-million dollar power transmission system projects, pan-India.
About Jiangsu Tongguang Communication Co. Ltd.
Jiangsu Tongneng (Tongguang) Communication Co Ltd, located in Haimen City, Jiangsu Province, China, was established in 1991 and is amongst the top 10 optical fiber cable manufacturers in China. The company offers products suitable for use in the Telecom, CATV, Oil & Gas, Highway, Railway and Defense sectors.
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SOURCE Sterlite Technologies Limited