Draka Communications, a leader in fiber and fiber cable solutions, today notified its customer base about an upcoming price increase for fiber optic cables containing steel components, including armor.
Draka received notification from its supplier(s) of steel that significant price increases will take effect on October 1. In turn, Draka provided customers a 30-day advance notification via letter that prices for armored fiber cable and other cables containing steel components will increase approximately five (5) percent on November 1. All quotes as of October 1 will reflect this price increase.
Steel price increases from the supplier(s) exceed 45% in the past 10 months. The increase in steel price is industry-wide and forecasted to continue into 2009. Products impacted include fiber optic cables containing single and double armor, Figure 8 messenger cables, interlock armor, and cables containing a steel central strength member. Draka remains diligent and committed to cost reduction efforts.
Draka, headquartered in Amsterdam, the Netherlands, is a $4 billion, publicly listed (Euronext) company with 9,145 employees worldwide. Draka is divided into three groups: Energy & Infrastructure, Industry & Specialty, and Communications. Communications is responsible for the production and sale of optical fiber, cable and communication infrastructure solutions globally.