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Fiber-optic cable glut forces companies to step up R&D

Posted: 10 May 2005 ?? ?Print Version ?Bookmark and Share

Keywords:fiber-optic cable?

Following an oversupply last year, fiber-optic cable companies in mainland China this year are concentrating on developing new products and widening their overseas markets.

The Ministry of Commerce has passed a measure ordering foreign fiber-optic manufacturers who intend to enter the mainland China market to pay anti-dumping tax ranging from 8 to 46 percent for a period of five years. The ministry earlier declared that foreign fiber-optic makers are dumping their products in the country.

The new measure aims to stabilize mainland China's fiber-optic industry, which has been experiencing a surplus in inventory despite the high demand for fiber-optic cables driven by the FTTH technology. Last year, output of fiber-optic cables in mainland China was 20 million kilometers, exceeding the market requirement of 14 million kilometers to 16 million kilometers.

This year, only a few makers are expected to expand their production capacity while the majority will focus on developing new products. For instance, Jiangsu Zhongtian Technology Co. Ltd (ZTT) is concentrating developing RF cables, as well as new cables using micro-cable systematic technology.

The company has entered into a US$15-million joint venture with Hitachi Cable and the Nanjing University of Posts and Telecommunications to establish Zhongtian Hitachi Radio Frequency Cable Co. Ltd, which will focus on the research and manufacture of coaxial cable for 3G applications.

Last year, ZTT manufactured 19,000km of OPGW cables and 38,000km of ADSS cables. Both of the company's ADSS and OPGW cable output grabbed a 35 percent share of the total market in mainland China. ZTT exports its products to more than twenty countries in North and South America, Europe, the Middle East and Southeast Asia.

Another maker, Wuhan-based FiberHome Telecommunication Technologies Co. Ltd has developed double-cladded Ytterbium-doped fibers (DCYF) with an output power of 100W and 400W. The company has an annual capacity of 3 million fiber-optic cables.

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