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Fujitsu merges photonics divisions for Japan market

Posted: 14 May 2008 ?? ?Print Version ?Bookmark and Share

Keywords:Fujitsu photonics business? Japan market? spin-off?

Fujitsu Ltd will spin off, through a simple absorption-type separation, its photonics manufacturing division and photonics product development division to its wholly owned subsidiary, Fujitsu Access Ltd, by July 1.

The company has been considering how best to allocate the management resources of its photonics business in order to further accelerate product development and promote manufacturing innovation, product quality and greater efficiency in its business operations. In conjunction with this, the company has decided to spin off its photonics manufacturing and Japan photonics product development divisions.

Capitalizing on the technology and know-how, Fujitsu has developed a competitive photonics business. In recent years, however, product develop cycles have become shorter as a result of growing demand for higher-speed, higher-capacity, multifunctional solutions, and the market environment is becoming increasingly challenging. Particularly with regard to the Japanese market, customers are demanding more diverse and sophisticated products, and competition is intensifying in regard to carriers' deployment plans for next-generation networks.

Up to now, the Fujitsu Group has developed these businesses by dividing responsibility, with Fujitsu Ltd responsible for backbone networks and Fujitsu Access responsible for access networks. As the market evolved, however, the boundary between backbone and access networks has become increasingly blurred. Believing that it was essential to combine the technological and manufacturing know-how of Fujitsu and Fujitsu Access into a more unified structure, Fujitsu announced on April 28 its plan to merge its photonics manufacturing division and Japan photonics product development division with the photonics business of Fujitsu Access.

At its Board of Directors meeting, upon careful consideration, the company formally decided to spin off and merge Fujitsu Ltd's photonics manufacturing division and Japan photonics product development division into Fujitsu Access through a simple absorption-type separation and to change the name of Fujitsu Access to Fujitsu Telecom Networks Ltd at the same time.

By establishing through this spinoff a flexible business structure for the Fujitsu Group's photonics business that encompasses development through manufacturing, Fujitsu will accelerate the development and manufacturing of high-quality products and offer its customers products that respond to their needs.

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