Chengdu Siwei Technology has announced the expiration of the annual framework agreement with Zhuzhu Fiber, a non-wholly-owned subsidiary of the company, and Sumitomo Electric. Anticipating similar transactions in the future, the company has renewed the framework agreement for the year 2024 to procure fiber preforms, related equipment, spare parts, and technical services from Sumitomo Electric.

It is worth noting that Sumitomo Electric holds a 40% stake in Zhuzhu Fiber, while Siwei Technology holds the remaining 60%.

According to information, Zhuzhu Fiber purchased fiber preforms from Sumitomo Electric for CNY 55.26 million in 2021, CNY 98.41 million in 2022, and CNY 112 million in the first ten months of 2023. The suggested transaction cap under the framework agreement is CNY 160 million.

To ensure that the selling price of fiber preforms, technical service fees, and payment terms are not lower than market levels, Zhuzhu Fiber will regularly monitor the average market prices of related product services.

Siwei Technology, formerly known as Chengdu Putian Cable, is a well-known enterprise in the cable industry. Last year, Siwei Technology announced the divestment of its equity in another cable company, Putian Far East, by the end of the year.