Corning Incorporated, the New York-listed fibre optic group, is to acquire a 25% stake in local Aberdare Fibre Optic Cables, which is owned by Altron through its Powertech subsidiary. The deal is worth $10.5 million.
The Aberdare parent company also manufactures copper and other industrial cabling.
A second acquisition of another 25% stake is due in early 2003, at a price dependent on profitability. Aberdare is to retain management control.
Aberdare says the deal includes a commitment by Corning to distribute 200 000km of optic cable outside the Southern Africa region, as well as access to Corning technology.
Altron CEO Robert Venter says the relationship between Aberdare and Corning goes back some time, with Aberdare acquiring a Spanish copper cable manufacturer from Corning last year.
"The Corning investment represents another cornerstone in Powertech`s strategy of globalisation and of forming equity relationships with world leaders," Venter says.
Aberdare is a major supplier to Telkom, but Venter says the roll-out of the second national operator, a Telkom competitor, creates an added market for its products. Corning says it also sees opportunity in the "imminent investment" in telecommunications networks in SA.
Aberdare says it has secured more than R200 million in export orders and is busy with a multimillion rand capacity upgrade at its Port Elizabeth plant.
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