For this purpose, the two companies have signed an investor agreement to set up a joint venture to create new jobs. The joint venture will be formed after approval by the relevant antitrust authorities.
"Signal transmission via singlemode fibers is a forward-looking technology that underscores our strategic positioning as a technology partner for intelligent data transmission solutions. By expanding our manufacturing capabilities, we want to strengthen our fiber optics business in order to meet the growing demand for singlemode fibers in Europe," explains Bruno Fankhauser, member of the Executive Board of Leoni AG with responsibility for the Wire & Cable Solutions division.
"The establishment of the joint venture in Germany and the accompanying expansion of our business activities in Europe fit perfectly into our '5-5-5' internationalization strategy. With Leoni, we have found a strong and reliable partner to produce and distribute singlemode fibers for the European market directly in Europe," says Jianlin Qian, Executive President of the Hentong Group, a provider of cable and system solutions for the telecommunications and energy industries.
The broadband expansion in Germany and other European countries as well as the increasing demand for data centers require high-performance singlemode fibers as an essential component of optical cables. Leoni and Hengtong are combining their respective strengths to meet this growing demand.
With its subsidiary j-fiber GmbH in Jena, Leoni has established itself as one of the leading manufacturers of multimode fibers in Europe and offers the joint venture the necessary infrastructure for a fast start of business. Hengtong Optic-Electric is one of the world's largest suppliers of singlemode fibers and is especially well represented in Asia. With combined resources, the two companies will be active in the European market for singlemode fibers in the future. The joint venture will operate under the name j-fiber Hengtong GmbH and will employ additional staff at the Jena site after the start of business.