FEBRUARY 3, 2010 -- Emcore Corp., a provider of compound semiconductor products systems for the fiber optics industry, is selling 60 percent of its fiber optics business to Tangshan Caofeidian Investment Corp. (TCIC) in Tangshan City, China, for $27.8 million now, and an extra $27 million after the deal closes.
Emcore and Tangshan Caofeidian will operate the company as a joint venture called Emcore Fiber Optics Ltd (EFO) in Hong Kong, which will concentrate on fiber optics for telecommunications, enterprise, cable TV, fiber-to-the-premises (FTTP), and video transport products.
The sale does not involve Emcore's satellite communications and specialty photonics fiber optics product lines. Emcore will retain the satellite communications and specialty photonics fiber optics product lines as well as the satellite and terrestrial solar businesses.
The joint venture will focus on developing a high volume, low cost manufacturing infrastructure and a local customer support organization in China. The deal should close within the next three months.
Reuben Richards Jr. will resign his position as Emcore's executive chairman and chairman of the board, and become EFO's chief executive officer. Other Emcore executives employees will be offered jobs at EFO. Hong Hou, Emcore's president and chief executive officer, also will serve as a director of EFO.
For more information contact Emcore online at www.emcore.com.