On the morning of June 23, 2015, Yangtze Optical Fibre and Cable Joint Stock Limited Company and Shin-Etsu Chemical Industry Co., Ltd. in Wuhan signed a joint venture agreement to establish company in fibre preform manufacturing.

The establishment of a new optical fibre preform company will be located in Hubei Qianjiang Jianghan Salt Chemical Industrial Park, the joint venture shares ratio is 51:49 (Shin-Etsu chemical 51%, YOFC 49%). The project will use the OVD process to manufacture optical fibre preform, the registered capital is 8 billion yen, the total investment amount is 12.5 billion yen, planning to put into operation in the second half of 2016.According to the operation of the joint venture company and the market demand, the joint venture company will be expanded in the late period of time.

Shin-Etsu chemical is a world famous high-tech materials super supplier, the history of optical fibre perform manufacturing technology development is thirty years up to this time. In addition, the company's optical fibre preform manufacturing equipment, performance testing equipment, waste disposal equipment, and all for the research and development, with a wealth of experience in the manufacture of chemical complete sets of equipment.

Shin-Etsu chemical prefabricated fibre rod core layer adopts to the mandrel large-scale and loss minimization of VAD (vapor axial deposition) process, the cladding using is conducive to large-scale OVD (outside chemical vapor deposition) process. YOFC  is the world's largest optical fibre preform suppliers, optical fibre preform mainly uses to accurately to control the fibre prefabricated stick refractive index profile of PCVD (plasma chemical vapor deposition) process. After more than 20 years of introduction, digestion, absorption and innovation, YOFC not only to fully grasp the core technology of PCVD, independent research and development of the greater size of the preform and manufacturing equipment. The YOFC and Shin-Etsu chemical to combine strengths, Shin-Etsu chemical OVD process and YOFC PCVD process effective combination, there will be to reduce the cost of production, to further enhance the competitive advantage of optical fibre preform. Set up joint venture company is part of a sustainable growth strategy of YOFC, will enhance YOFC's leading position in the market, and makes great strides forward to the the company's vision.