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TKH participates in optical fibre preform joint-venture in China

TKH participates in optical fibre preform joint-venture in China

TKH announces it has agreement to participate in a joint-venture with Shin-Etsu Chemical Co., Ltd. (Japan) and Jiangsu Fasten Hongsheng Group Co. Ltd. (China) for the local production of optical fibre preform in Jiangyin (China).

In the joint-venture under the name Shin-Etsu (Jiangsu) Optical Preform Co., Ltd., Shin-Etsu Chemical has a share of 75% and Fasten and TKH each 12.5%. The location of the plant is in a high-tech industrial park in Jiangyin, Jiangsu Province, on a land area of 135,000 m2. The start of the plant’s operation is scheduled at the end of 2011.

For TKH, the strategic stake in the joint-venture strengthens its supply chain for optical fibre preform. Through this joint-venture in China, TKH obtains direct benefits of the technological leadership in preform manufacturing of its partner Shin-Etsu Chemical.

Besides this, TKH has taken the decision to double the TKH optical fibre production capacity in China to over 4 million kilometer fibre at the end of 2011. The total investment for the joint-venture stake and the expansion of the existing capacity will be approximately € 10 million.

Haaksbergen, 27 October 2010

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