Fiber optic component manufacturer Optical Communication Products Inc. has signed an agreement with Hong Kong-based SAE Magnetics (H.K.) Ltd., a wholly owned subsidiary of TDK Corp. of Tokyo. The arrangement will enable the Woodland Hills, Calif., company to manufacture some of its products in China, increasing production capacity and reducing costs. Although the company will retain its plants in California and Hsinchu, Taiwan, it will reduce their work forces when production at SAE begins.