Corning Acquires Shares in South African Optical Cable Company.Business Editors, High Tech Writers HICKORY, N.C.--(BUSINESS WIRE)--June 6, 2001 Corning Incorporated Corning Incorporated NYSE: GLW is an American manufacturer of glass, ceramics and related materials, primarily for industrial and scientific applications. The company was known until 1989 as Corning Glass Works. (NYSE NYSE See: New York Stock Exchange :GLW GLW Glasgow Airport (UK) GLW Gross Laden Weight GLW Good Lady Wife (Australia) ) today announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Corning International Corporation, has entered an agreement to acquire 50 percent of Aberdare Fiber Optic Cables, a South African manufacturer of optical fiber cable for the sub-Saharan telecommunications market. Corning Cable Systems, Corning Incorporated's cable division based in Hickory, N.C., USA, will manage Corning's interest in the equity company. The transaction will be completed in two stages over the next two years. "This is an important equity relationship for Corning Cable Systems," said James R. Cooke, senior vice president, strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. and development for Corning Cable Systems. "In the short term, it will allow our company access to major end users who are not currently serviced, while establishing a strong presence over the long term to support the growing telecommunications demand in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and other countries in sub-Saharan Africa." Corning Cable Systems will appoint Aberdare Fibre Optic Cable's marketing and commercial executive, while Aberdare Cables (Pty) Ltd., the other equity owner, will appoint the chief executive officer. Corning will continue to supply 100 percent of the venture's fiber requirements. Other terms of the shareholders' agreement shareholders' agreement n. an employment agreement among the shareholders of a small corporation permitting a shareholder to take a management position with the corporation without any claim of conflict of interest or self-dealing against the shareholder/manager. were not disclosed. Aberdare Cables Ltd., a wholly owned subsidiary of Johannesburg Security Exchange-listed Power Technologies (Pty) Limited, was founded in 1947 as a power cable manufacturer. Its subsidiary, Aberdare Fibre Optic Cables, has a history dating back to 1985 when the company started manufacturing fiber optic cables. Today it provides a full optical cable product line including duct and direct-buried cable Direct-buried cable (DBC) is a kind of communications or transmissions cable which is especially designed to be buried under the ground without any kind of extra covering, sheathing, or piping to protect it. , aerial cable and tight-buffered cable for premises network applications. Aberdare Fibre Optic Cables employs 200 people and is based in Port Elizabeth Port Elizabeth, city (1991 pop. 670,653), Eastern Cape, SE South Africa, on Algoa Bay, an arm of the Indian Ocean. It is a tourist center and a major seaport that ships diamonds, wool, fruit, and other items. , South Africa. Aberdare Cables Ltd. specializes in the manufacture and distribution of low, medium and high voltage power cable, copper and fiber-optic telecommunication cable, industrial and instrumentation cable, data cable, allied plastic components and a complete range of associated accessories. Aberdare Cables Ltd. employs more than 4,100 personnel locally and in Europe. Further information is available on the Internet at www.aberdare.co.za, www.powertech.co.za, and www.altron.co.za. Corning Cable Systems, committed to providing superior customer-support services and unparalleled product quality, has more than 15,000 employees in 20 countries. With sales of more than $2 billion, Corning Cable Systems, wholly owned by Corning Incorporated (NYSE:GLW), is the leading manufacturer of fiber optic and copper communications system solutions for voice, data and video network applications worldwide. Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning revenues for 2000 were $7.1 billion. |
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