Coronavirus could dampen China’s fiber preform production: CRU
While noting it’s still too early to make definitive assessments, an analyst at market research firm CRU writes that the coronavirus outbreak in China has the potential to affect a significant portion of China’s fiber preform production capacity. A reduction in fiber preform production could slow not only Chinese network deployments but roll-outs in other countries as well.
Michael Finch, head of wire and cable at CRU, writes in a post on the company’s website that Wuhan, capital of Hubei province and epicenter of the coronavirus outbreak, is home to more than 20% of China’s preform capacity – more, if one considers factories operated by joint ventures elsewhere in Hubei. For example, two of China’s five largest suppliers, YOFC and Fiberhome, have major facilities in the area. YOFC's preform facility in Wuhan has an annual capacity of 64 million fiber-km, making it one of the biggest preform manufacturing facilities worldwide, Finch writes. Meanwhile, Fiberhome has a joint venture facility in the Wuhan area co-owned with Japanese company Fujikura. That factory has an estimated capacity of 33 million fiber-km. YOFC also has two facilities in the region as part of its joint venture with Shin-Etsu, Finch points out.
The Hubei Provincial Government has kept workers away from factories by extending the annual New Year’s holiday to February 13. The effects of this extended break are mitigated by the fact that demand is usually weak during this time of year. However, one could foresee issues developing if the break is extended further or if the virus spreads significantly into nearby provinces such as Jiangsu, which also has significant fiber and cable manufacturing facilities, Finch writes.
Should such problems develop, other suppliers (domestic and foreign) would need to step up their production. Excess inventories of fiber also could be tapped to meet demand, Finch suggests.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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