Production of fiber lasers in Russia

Nov. 17, 2010
Moscow, Russia – RUSNANO, the Russian Corporation of Nanotechnologies, will invest in expansion of Russian production of advanced fiber lasers for cutting, welding, deposition, and engraving of metal items and high-technology telecommunications equipment for long-distance trunk communication at IRE-Polus, a subsidiary of US-based IPG Photonics Corporation.

Moscow, Russia – RUSNANO, the Russian Corporation of Nanotechnologies, will invest in expansion of Russian production of advanced fiber lasers for cutting, welding, deposition, and engraving of metal items and high-technology telecommunications equipment for long-distance trunk communication at IRE-Polus, a subsidiary of US-based IPG Photonics Corporation.

Under the agreement, RUSNANO will acquire an interest of up to 25.01 percent for $50 million in the science and technology group IRE-Polus. Initially, RUSNANO will purchase a 12.5 percent interest for $25 million. Investments by RUSNANO will be devoted to expanding the production capacity of IRE-Polus in Fryazino, Moscow District, as well as developing sales channels and new production technology. IPG Photonics plans to expand its manufacturing operations and broaden it research capabilities in Russia.

Founded by Russian scientists, IPG Photonics Corp. has, over the last five years, become the world leader in high-performance fiber lasers and amplifiers and systems based on them. The company is listed on NASDAQ.

IRE-Polus is one of three manufacturing bases for IPG Photonics Corp.; the other two are in Germany and the US. The president of IPG Photonics Corp. is its founder, CEO of IRE-Polus, Dr. Valentin Gapontsev.

Fiber lasers offering a broad range of power (from 5 watts to 50 kilowatts) are gradually replacing gas and many solid-state lasers. A diode pump and nano-structured fiber make it possible to reach high output power, gain and efficiency factor of up to 30 percent in commercial production, and reduce cost of ownership up to 50 percent.

"This is RUSNANO's first partnership with a US listed company. The technology used in the project is a great breakthrough. Its power, compactness, and low cost of ownership open doors to more and more new applications for fiber lasers. Already they can be used in solar batteries, medicine and electronics. Domestic production of laser complexes based on these innovations will enable Russia to re-fit strategic sectors - telecommunications, mechanical engineering, and medicine with the latest equipment and instruments," said RUSNANO managing director Konstantin Demetriou.

IRE-Polus is expected to earn most of its income under the project from sales of high-power fiber amplifiers and lasers with broad applications and from telecommunications equipment. The company will manufacture communications systems that use proprietary fiber optic technology: 40-Gbps DWDM-transponders, reconfigurable optical multiplexers, optical amplifiers, multiport 10-Gbps multiplexer/transponders, and other communications equipment.

IRE-Polus develops and manufactures fiber lasers and amplifiers, optical components, modules, instruments, subsystems, and systems for fiber, atmospheric, and free-space optical communication; cable television; optical radar; remote control of industrial objects and atmospheres; industrial complexes for laser welding, tempering, thermal processing, and marking; control and measurement systems; sensors; scientific research; surgery; and biomedicine.

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