Futong Group to Establish Joint Ventures with Sumitomo Electric in China to Produce Optical Fiber including Preform

2008-10-24

¡¡Futong Group Co., Ltd. has agreed with Sumitomo Electric Industries, Ltd. to set up three optical fiber-related joint ventures including an optical fiber preform manufacturing company in China.

¡¡The projects are designed to meet the anticipated dynamic demand for optical fibers and cables. In this context, the competitive advantages of both Futong Group and Sumitomo Electric will come to bear. Considerable synergies will be unleashed.

¡¡The product range will cover the entire value chain from preforms to fibers and cables. The production facilities will be located in Hangzhou City of Zhejiang Province, Chengdu City of Sichuan Province, Shenzhen City of Guangdong Province and Hong Kong.

¡¡The three joint venture companies that Futong Group and Sumitomo Electric agreed to establish are:

¡¡(1) Hangzhou SEI-Futong Optical Fiber Co., Ltd.: an optical preform and fiber manufacturing company. It will be Sumitomo Electric's first preform manufacturing plant in China.

¡¡(2) Chengdu SEI-Futong Optical Cable Co., Ltd.: an optical cable manufacturing company. It will meet recent demand growth in western China.

¡¡(3) Hong Kong SEI-Futong Holding Limited: a Hong Kong based holding company (Hong Kong). It will serve several purposes, namely providing financing to Transtech Optical Communications Co., Ltd. and SEI Optical Fiber and Cable (Shenzhen) Co., Ltd., enhancing support for major customers in South China, in particular in Guangdong Province, and finally£¬expanding exports by utilizing the locational advantage of being close to Southeast Asia.

¡¡Transtech Optical Communications Co., Ltd., is a Futong Group optical fiber manufacturing subsidiary. Sumitomo Electric Optical Fiber and Cable (Shenzhen) Co., Ltd. is an optical fiber and cable manufacturing company presently wholly-owned by Sumitomo Electric. It will following the transfer of shares to the holding company change its name to SEI Optical Fiber and Cable (Shenzhen) Co., Ltd.

¡¡Sumitomo Electric Industries, Ltd. (TSE: 5802) designs, manufactures, and sells electric cables, optical fibers and components, advanced electronic devices, automotive parts, cemented carbide tools and special steel wires-products that play an essential part in supporting the economic infrastructure.