Lucent Technologies and Russia's SviazStroy-1 Form Fiber Cable Venture
February 19, 1999
MOSCOW, Feb. 18 /PRNewswire/ Lucent Technologies and SviazStroy-1 today announced the formation of a joint venture company to manufacture fiber optic cable to meet the growing needs of network operators in Russia and other countries within the Commonwealth of Independent States.
The new company, called Lucent Technologies SviazStroy-1 Fiber Optic Cable Company, will be based in Voronezh, Russia, about 500 kilometers south of Moscow. Lucent will be the majority owner of the joint venture, with a 51 percent share. SviazStroy-1, the largest construction company implementing orders of Rostelekom and regional PTTs in Central Russia, will own 49 percent share.
"This is an important milestone in our ability to serve the worldwide optical fiber marketplace," said Bill Spivey, president of the Network Products Group for Lucent Technologies. "This is a vital, growing market for us, and we believe our new partner, SviazStroy-1, will be a key to our success with this venture."
"Modern communications networks have created a growing demand for high- quality fiber optic cables," said Anatoly Rogozin, General Director of SviazStroy-1. "Lucent's technology and manufacturing experience will ensure our joint venture produces the industry's most advanced fiber optic cable at a competitive price. SviazStroy-1, in cooperation with Lucent Technologies, will provide construction and turn-key projects for sophisticated communications and information systems deployment."
Initially, some 60 people will be employed by the company, with approximately 40 production employees expected to be hired for the fiber optic cable operation during the next two years.
The facility, which is located in already-constructed and operational SviazStroy-1 workshops, will produce single-mode fiber optic cable, as well as Lucent's TrueWave(R) RS and AllWave (TM) fiber optic cable offerings. These offerings represent a breakthrough in the fiber industry by opening new windows in the fiber spectrum. The company is expected to begin initial product manufacture in the next few weeks, upon completion of the registration process in Russia.
"USA investment into the Russian economy will deliver technologies that will serve as a foundation for our economic growth," said I.M. Sabanov, the governor of Voronezh region. "The establishment of this venture will contribute to everyone by adding new jobs to the area and transferring advanced management and production experience to our factories. We are optimistic that other high-tech manufacturing ventures will follow as a result."
"This project represents the culmination of many months of work by Lucent and SviazStroy-1," said John Tefft, the U.S. Embassy's Deputy Chief of Mission in Russia. "It is an important step toward the revitalization of the Russian telephone network with the kind of advanced technology in which both of our countries excel."
Lucent Technologies has more than 400 employees at nine locations in Russia, CIS in manufacturing, sales and service operations in the cities of Moscow, St. Petersburg, Irkutsk, Ekaterinburg, Kiev, Almati and Voronezh. In the past few years, Lucent has invested well over $30 million in Russia, including its 5ESS(R) System manufacturing facility in St. Petersburg, and switching and transmission software research and development laboratories in Moscow and St. Petersburg, as well a National 5ESS software support center in co-operation with Leningrad Telecommunications Research and Development Institute (LONIIS).
"Today's announcement is a further indication of Lucent's commitment to the Russian marketplace -- and our plans to be a major force in this part of the world," said Spivey.
SviazStroy-1 designs, develops and implements the full range of project and construction activity on all types of cabling and installation of networking equipment. The company has an experience of communications cable with copper trend manufacturing and performs industry and residential construction. During the last three years, SviazStroy-1 has installed more than 4000 km of fiber optic cables, deploying trunk lines and backbone network infrastructure.
"We consider the establishment of this fiber optic joint venture to play a significant role in the Russian communications network development, which will help advance the country's integration into the global telecom community," said A. E. Krupnov, the chairman of the State Committee of Communications and Information of Russian Federation. "Implementation of this joint venture project will allow Russian network operators to acquire fiber optic cable in country, without the necessity to purchase it abroad.
"This will help us gain additional experience in working with modern telecommunication technologies," Krupnov added. "Today the entire world is building the 'last mile' subscriber access with fiber optics, and Russia plans to fully utilize this progressive infrastructure for our telecommunications needs."
Lucent Technologies is the largest vertically integrated fiber optic cable manufacturer in the world, with 24 cable manufacturing and joint ventures around the world. Lucent's extensive fiber product line is designed by the company's research and development organization, Bell Laboratories, which has won more than 1,600 patents in optical networking.
Lucent's Bell Labs invented nonzero-dispersion (NZDF) fiber with its award-winning TrueWave fiber offering. With more than 70 percent of the installed NZDF base around the world, Lucent remains the industry leader in providing fiber for high capacity networks. Since introducing TrueWave Fiber in 1993, Lucent has sold millions of kilometers of TrueWave Fiber.
Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. More information about Lucent Technologies, headquartered in Murray Hill, N.J., is available on its Web site at www.lucent.com.
AOOT "SviazStroy-1", formed in 1992, operates as part of concern "SviazStroy." It is a successor of the State Construction and Deployment Trust "SviazStroy-1" established in 1965. The company incorporates 11 structured enterprises, located in eight large cities of Central Russia, as well as joint venture "KVO Cable" with BICC Communications, based in England, for copper trend cable production, and a joint venture with Reliant Trade Corporation for the waste cable processing. AOOT "SviazStroy-1" and its JVs have 2,542 employees.
SOURCE Lucent Technologies |