WCA January 2012

Industry news

APWCC to sell its stake in joint venture

prices, plus the consolidation plan of the fibre optic industry by the Chinese government, have been contributory factors. Asia Pacific Wire & Cable – Singapore Email : info@apwcc.com Website : www.apwcc.com New Dubai office Modular Wiring Systems, a subsidiary of electrical cable manufacturer Tratos Ltd, has opened its first overseas office, in Dubai’s Jebel Ali Free Zone (Jafza). Modular Wiring Systems – UK Fax : +44 1753 566 701 Email : info@modwire.com Website : www.modularwiring.com

relieved of its commitments in relation to the joint venture with SPFO inclusive of any lease bonds. APWCC’s board has sought this move to retain focus in its core wire and cable business, also believing that over-supply inhibits the opportunity of sustainable development of its core wire and cable business. The fibre optic cable business is controlled by a few major firms covering over 80% of the market in China. Given such a scenario in the market, APWCC was unable to allocate its resources in the fibre optic domain owing to this saturation of the market by a few players. Also the access to raw materials by SPFO at competitive

Asia Pacific Wire & Cable (APWCC), which specialises in wires and cable manufacturing, has agreed to sell its 51 percent stake in its joint venture (JV) with fibre optic manufacturer Shandong Pacific Fibre Optic (SPFO) under certain agreed stipulations. APWCC has decided to sell off its stake in the JV to a group of investors in an all-cash deal. The sale would be completed in the event of completion of buyer’s verification of the sale details and procurement of local government clearances, which APWCC believes will take between 30 and 60 days. Subsequent to the completion of the above pre-requisites, APWCC will be

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Wire & Cable ASIA – January/February 2012