Rising Demand for Optical Fibers for Broadband Expansion

The expansion of broadband in Germany and other European countries and the growing demand for data centers require high-performance single-mode fibers as a key element in optical cables. Leoni and Hengtong are combining their strengths to service this growing demand. (Source: Leoni)

Leoni, a global provider of energy and data manage­ment solutions in the automotive sector and other indus­tries, and Hengtong Optic-Electric, a global supplier of cable and system solutions for the telecommu­nications and energy sectors, plan the joint production of single-mode fibers for telecommu­nications and data networks in Jena for the European market. To this end, both companies have signed a framework investment agreement to establish a joint venture, and intend to create additional jobs. The joint venture will be founded after approval by the relevant antitrust authorities.

“The transmission of signals via single-mode fibers is a forward-looking technology. It enhances our strategic positioning as a technology partner for intelligent data transmission solutions. By expanding our manufacturing competence, we expect to strengthen our fiber optics business to serve the increasing European demand for single-mode fibers,” explained Bruno Fankhauser, member of the board of directors of Leoni with responsibility for the wire & cable solutions division.

Bruno Fank­hauser, member of the board of directors of Leoni, and Jianlin Qian, chairman of the board of Hengtong, signed a frame­work invest­ment agree­ment to estab­lish a joint venture. (Source: Leoni)

“The establishment of the joint venture in Germany and the accompa­nying expan­sion of our business activities in Europe are a perfect fit for our ‘5-5-5’ interna­tionali­zation strategy. In Leoni, we have found a strong and reliable partner to produce single-mode fibers directly in Europe and sell them in the European market,” said Jianlin Qian, chairman of the board of Hengtong.

The expansion of broadband in Germany and other European countries and the growing demand for data centers require high-perfor­mance single-mode fibers as a key element in optical cables. Leoni and Hengtong are combi­ning their strengths to service this growing demand.

Through its subsidiary J-fiber in Jena, Leoni is an established leading producer of multimode fibers in Europe. J-fiber will provide the joint venture with the necessary infra­structure to commence its operations rapidly. Hengtong Optic-Electric is one of the world’s biggest suppliers of single-mode fibers with a strong presence in the Asian region, in particular. The two companies will address the European market for single-mode fibers using their combined resources. The joint venture will operate under the name of j-fiber Hengtong GmbH and foresees recruit­ment of new employees in Jena after taking business. (Source: Leoni)

Link: LEONI AG, Nuremberg, Germany

Speak Your Mind

*