WCA January 2012

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Industry news
Wire & Cable ASIA – January/February 2012 14
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
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
prices, plus the consolidation plan of
the fibre optic industry by the Chinese
government, have been contributory
factors.
Asia Pacific Wire & Cable – Singapore
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APWCC to sell its
stake in joint venture
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:
Website: