Samsung Fiberoptics "Attacks Global Fiber Optic Cable Markets "
Samsung Fiberoptics comes out to attack the global fiber optic cable markets of annual 7 trillion won with a strategy to expand oversea production centers.
It is a method to produce the core material, optical fibers, in Gumi, Korea and Hinan, China, transfer them to the local production centers such as South America, Europe, etc. and produce the finished products. Samsung Fiberoptics has a plan to establish a local plant in northern area of Mexico within this year to respond against demand of fiber optic cables from North America. It also has a policy to expand new production center in Europe to attach Europe, Africa and Middle East markets.
There is promoted a cooperation in a method that Samsung Fiberoptics provides optical fibers and process technologies and the local partners invest capital. It is an operation in order to minimize investment risk while fast responding against accelerating demand cycle.
According to the industry on the 2nd of this month, the global fiber optic cable markets has 7 trillion won a year and grows 10% every year due to demands of Fiber-To-The-Home (FTTH) and infrastructure investment of new markets. The fiber optic cable markets are gradually diversified from the advanced countries including Europe, USA, Japan, etc. to new countries including China, South America, Africa, Southeast Asia, etc. due to demand growth of new markets. Accordingly, demand cycle of the fiber optic cable becomes increasingly fast, while burden of logistics cost is increased.
Logistics cost of smart phone brain, dual core 2GHz through ships is at 5 % level of the selling price, but its weight increases up to 20 % when using air logistics. Recently, as the oversea telecommunication providers are operating short product delivery, weight of air logistics for the fiber optic cable companies is gradually increasing. Especially, the delivery time in Europe markets with high demand of fiber optic cables has decreased from 4 weeks to 1 ~ 2 weeks. Samsung Fiberoptics has selected a method of local production centers to allow reduction of logistics cost burden and responding against shorten demand cycle.
President Geun-myeon Lee said, “We will acquire additional oversea production centers and expand and reorganize the oversea sales manpower in double size to expedite new market attack.” and added, “We will respond against market changes multilaterally and promote aggressive marketing to grow to the global top 5 company by 2012.”