Leoni, Hengtong joint venture targets European manufacture of single-mode fiber

German fiber supplier Leoni says it has agreed to create a joint venture with China’s Hengtong Optic-Electric Co., Ltd. for the production of single-mode fiber products for telecom and datacom networks in Jena, Germany. The joint venture, if approved by the relevant antitrust authorities, will complement the activities of Leoni subsidiary j-fiber GmbH, which produces multimode fiber in Jena (see "Leoni assumes full control of j-fiber"). The venture will be called j-fiber Hengtong GmbH.

j-fiber GmbH will supply the necessary infrastructure for the joint venture. Leoni expects to hire additional employees in Jena as the joint venture gets off the ground.

“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 singlemode fibers,” explained Bruno Fankhauser, member of the Board of Directors of Leoni AG with responsibility for the Wire & Cable Solutions Division.

“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,” added Jianlin Qian, chairman of the board of Hengtong. The company specializes in single-mode fiber production, among other activities (see, for example, "Hengtong, China Unicom test large effective area fiber").

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