Alcatel and FiberHome Telecommunication Technologies of Hubei have signed a Memorandum of Understanding (MoU) to create a joint venture company that will manufacture and sell Alcatel’s complete optical fibre product portfolio in China, together with FiberHome’s optical cabling portfolio.
Located in the Hubei Province, in the central part of China, the new joint venture will take the form of a closed joint stock company, with the two companies each holding a 50/50 share. Production of fibres is slated to start in early 2003.
The new company will gain access to Alcatel’s proprietary processes for the manufacture of optical fibres and preforms and the complete range of Alcatel’s optical fibre products, including a range of specialty fibres, will be made available to the joint venture to sell.
FiberHome will contribute land and building resources to the joint venture, including their optical cable plant and cabling expertise.
The joint venture will establish its own specialised sales force to develop the business in China and other parts of Southeast Asia.
China is one of the fastest growing optical fibre markets and is expected to almost double in size by 2006.