Sumitomo Electric to partner with Nexans for FTTH in Europe
DECEMBER 5, 2008 -- Sumitomo Electric Industries Ltd. has reached an agreement with Nexans S.A. to collaborate in optical fiber cable business for terrestrial telecommunications in Europe, specifically the deployment of fiber-to-the-home (FTTH) networks.
DECEMBER 5, 2008 -- Sumitomo Electric Industries Ltd. (search for Sumitomo) has reached an agreement with Nexans S.A. (search for Nexans) to collaborate in optical fiber cable business for terrestrial telecommunications in Europe, specifically the deployment of fiber-to-the-home (FTTH) networks.
Per the agreement, Sumitomo Electric has entered into a joint venture agreement with Nexans to acquire 40% of the shares in Opticable S.A., a wholly-owned Belgium-based subsidiary of Nexans, which designs, manufactures, and markets terrestrial optical fiber cables to various telecom operators in the European region. The transaction is subject to the approval of antitrust authorities and is expected to close by early 2009.
Nexans offers a range of cables and cabling systems and develops equipment for energy, telecom, and transport networks. The group is also committed to providing enhanced options for all FTTx applications.
Through the investment in Opticable, Sumitomo Electric says it will join Nexans in enhancing the joint activity of both companies in the growing European FTTH market. The synergies of Nexans' cable manufacturing facilities, engineering competencies, and its sales channels, combined with Sumitomo Electric's optical fiber and FTTH technology, are expected to bring added value to the European FTTH market, says the company.
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