Corning Inc. (Corning, NY) has reached an agreement with Lucent Technologies to purchase Lucent's controlling equity interests in Lucent Technologies Shanghai Fiber Optic Co., Ltd and Lucent Technologies Beijing Fiber Optic Cable Co., Ltd. for an aggregate payment of $225 million in cash.
Corning's purchase of these interests is subject to the satisfaction of certain conditions including, the approvals of the other equity shareholders of each joint venture and relevant governmental approvals. As a world leading manufacturer and supplier of optical fiber, optical cable and photonic components, Corning intends to expand its presence in the growing Chinese telecommunications marketplace. “The addition of these fiber and cable manufacturing assets is an important element of our regional growth strategy for China and Asia,” adds Corning President and CEO, John W. Loose. “With local fiber manufacturing capability we will be able to gain stronger market access to Chinese cablers and end user customers.
“Adding to Corning Cable Systems' cable capacity in China will strengthen our supplier position in the region. We are committed to working with the venture partners to ensure the continued success of both ventures.”
