Issued on 2002/9/2
Excerpted from Shanghai Electronics Information Network

Japan Showa Electric Wire & Cable Co., Ltd. said the other day that it would greatly increase the output of optical fiber at its production base in Zhejiang, China and expect to double the output at the end of year. Moreover, the company is going to introduce the equipment at the production base for raw material of optical fiber so as to build a complete production system. The total investment is estimated to exceed 4 billion Yen.

Japan Showa Electric Wire & Cable Co., Ltd. set up a joint venture Hangzhou Showa Communication Co. Ltd with Hangzhou Futong Group, the leading manufacturer of China's telecommunication wire and cable for the purpose of producing single mode optical fiber. As the demand on the Chinese market for optical fiber continues to grow, the company has decided to double the current yearly output from 1.5 million core/kilometers to 3 million core/kilometers. At present, the joint venture imports the optical fiber raw material to make finished products. In order to build a complete production system and enhance the price competitiveness, the joint venture has decided to introduce equipment, before the spring of next year, for producing silicon dioxide, the raw material for optical fiber with a chemical synthetic method.

According to the survey and forecast by the Japan Showa Electric Wire & Cable Co., Ltd., the demand for optical fiber on Chinese market in 2001 was about 11-12 million core/kilometers; though the demand will dip slightly in 2002, the Beijing Olympic in 2008 would boost the demand on the market. This prospect has boosted the joint venture to increase the output.