Sterlite, Tongguang JV start production in China

Jiangsu Sterlite Tongguang Fiber on Monday announced the commencement of production of optical fiber at Haimen in Jiangsu, China.

The joint venture (JV) company formed between Sterlite Technologies (Sterlite) and Jiangsu Tongguang Communication (TGCI) will manufacture optical fiber.

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 $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 strong foothold in the market.

In the JV, Sterlite brings brings expertise in optical fiber technology whereas TGCI brings significant fiber cable manufacturing expertise and market reach in the country. With the benefits of extended product lines, Jiangsu Sterlite would make it faster, easier and more cost effective for utilities and service providers to build new age communication infrastructure.

 

"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.

"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, said Tang Jinming, chairman of Jiangsu Tongguang Communication.