Optic Fiber Systems, RUSNANO's Portfolio Company, Strengthens Technological Partnership with Sumitomo Electric

11 November 2019

On November 11, 2019, an official ceremony of signing a Memorandum of Understanding regarding the strategic partnership between the shareholders of Optic Fiber Systems JSC (OFS) and the Japanese company Sumitomo Electric Industries, Ltd. took place in Saransk, the Republic of Mordovia.

The ceremony was held in the presence of the Head of Mordovia, Vladimir Volkov, and was also attended by Shigeru Suemori, Director General of Sumitomo Electric’s Optic Fiber and Cable business unit, as well as members of the Boards of Directors of OFS from RUSNANO and Gazprombank and Members of the Government of the Republic of Mordovia.

RUSNANO’s portfolio company Optic Fiber Systems is the first and only optical fiber production plant in Russia, located in Saransk (the Republic of Mordovia).  The official opening ceremony of the plant took place on September 25, 2015.  The shareholders of the firm are RUSNANO, Gazprombank and the Government of the Republic of Mordovia.  Optical fiber is the main component of fiber-optic cables used for signal transmission in contemporary communication systems. The fibers can also be used as sensors.

Optic Fiber Systems, RUSNANO's Portfolio Company, Strengthens Technological Partnership with Sumitomo Electric

The Japanese company Sumitomo Electric is one of the world’s leading manufacturers of optical fiber and has over 40 years of experience in the development and production of high-tech products for optical communication systems.  In the 1980s, it was Sumitomo Electric that became the developer of VAD technology, the most popular preform manufacturing technology (used to produce optical fiber).

The cooperation between Optic Fiber Systems JSC and Sumitomo Electric began in 2013, at the same time as the start of construction of the OFS plant.  Since Optic Fiber Systems JSC launched production in 2016, Sumitomo Electric has been its primary supplier of preform for the production of optical fiber. It also helped OFS to improve production and ensure that the high quality of Russian-made optical fiber remains consistent.

According to the signed agreement, Sumitomo Electric will continue to provide comprehensive technological support for OFS both in matters of drawing optical fiber from completed preforms and, in the future, by increasing the volume of drawing and expanding the manufacturing of its own preforms.  The parties will also consider the possibility of the Japanese firm acquiring a share the capital of Optic Fiber Systems JSC.  Strategic cooperation with Sumitomo Electric will allow OFS to gain access to state-of-the-art technologies, as well as the professional competence and decades of experience of the globally renowned Japanese company.

Sergey Vakhterov, Senior Managing Director of RUSNANO and Member of OFS’ Board of Directors, said: “The partnership between Optic Fiber Systems and Sumitomo Electric is sure to satisfy the increased demand of the plant for high-quality preforms after expanding production to 4 mln kilometers of optical fiber in the beginning of this year.  In turn, the stable supply of OFS products to the Russian market will be able to replace the products of foreign manufacturers in the growing EAEU market and further the implementation of the national Digital Economy program, which aims to provide high-quality Internet access to socially significant facilities and citizens all around the country.”

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 105 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 5 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.

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Sumitomo Electric Industries, Ltd. is a recognized global technology leader with over 270,000 employees working at more than 390 group companies in 40 countries. Building on over 120 years of innovation, today Sumitomo Electric is engaged in diversified business activities that support people’s daily lives and industries in five business segments: automotive, infocommunications, electronics, environment & energy, and industrial materials.

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