2000 The former Hitachi Cable News Release
Information (including product prices, product specifications, details of services, launch dates, inquiry information, and URLs) contained in this news release is current as of the date of the press release but is subject to change without notice. Please note that details may differ from those effective on the search date.
The Establishment of a Joint Venture Corporation for OPGW in China
With the aim of manufacturing and selling OPGW (*1) within China, we have established a joint venture corporation with China's leading optical cable maker: Jiangsu Zhongtian Technologies Co., Ltd. (referred to hereunder as Jiangsu Zhongtian); Headquarters: Yuelong Road, Nantong City, Jiangsu Province, China; President: Xue Ji Ping.
OPGW is a highly functional product as a power transmission line due to the twisted combination of aluminum covered steel wire surrounding the OP unit (*2) which stows the optical fiber. This configuration gives the aluminum covered steel wire a 'lightening guard function' that is integrated with the OP unit's 'communication and information management functions'.
With China in the middle of hastily pushing forward the maintenance of their power supply network, and the high reliability of OPGW for this kind of usage - it is expected that from now on demand will quickly increase.
Hence, at this time, to answer the demands for OPGW in China we have set up this joint venture corporation, making good use of the business base that Jiangsu Zhongtian holds within China and the manufacturing know-how that we possess.
This new company will be a production base for our aluminum wire in China, and initially we will focus our efforts on the OPGW business whilst watching market trends. In the future we plan to broaden our manufacturing base to include other aluminum wires.
An outline of the new joint venture corporation can be seen below:
| Company name: | Zhongtian Hitachi Fiber Optic Cable Co., Ltd. |
|---|---|
| Location: | Nantong City Jiangsu Province |
| Representative: | Main representaive: someone from Jiangsu Zhongtian Sub representative: someone from Hitachi Cable Ltd. |
| Investment ratio: | Jiangsu Zhongtian 75% and Hitachi Cable 25% |
| Paid-in Capital: | 5 million US$ |
| Established: | May-2000 |
| Start of production: | June 2000 (forecast) |
| Staff: | 26 (initial forecast) |
| Net Sales: | approx. 10 billion Yen (forecast revenue for 2003) |
Reference notes:
An outline of Jiangsu Zhongtian can be seen below:
| Paid-in Capital: | 127 million Yuan (approx. 17 billion Yen) |
|---|---|
| Net Sales: | 230 million Yuan (approx. 30 billion Yen) |
| Employed staff: | approx. 400 |
| Established: | February 1996. |
| *1 | OPGW = composite fiber OPtical overhead Ground Wire |
| *2 | OP Unit = Optical cable unit (the metal pipe that stows the optical fiber.) |