Elec-Tech Invests RMB 1 Billion to Establish LED Joint Venture

Elec-Tech revealed on January 14th plans to establish a joint venture focused on LED production in Bengbu city, Anhui Providence. The joint venture will have a registered capital of RMB 1.4 billion (US $231.4 million), of which RMB 1 million is provided by Elec-Tech through funds, materials, and intangible assets. The company will own 71.43 percent in shares. The other 28.57 percent is owned by Bengbu City Holding Corporation who invested RMB 400 million.

The joint venture will be known as Bengbu Sanyi Semiconductor. Main operations will be in LED chip R&D, production, sales, and technical consultation, as well as development, production, LED component sales, LED lighting, LED fixtures, and LED display screens.

The goal in establishing the joint venture is mainly to build a LED R&D and production base, to expand LED production capabilities, take steps towards improving the company’s business strategy, as well as taking advantage of opportunities with local investment companies to develop the sales market for LED products, said the company.

However, since Elec-Tech is currently involved in many LED industry investment projects and regional distribution is scattered, there are certain levels of fund, management, and market risks toward foreign investment.

The company has therefore taken several measures for investment risk prevention. Elec-Tech has taken advantage of support by national and regional governments of energy efficient and environmentally conservative businesses. Elec-Tech has received government policies which support their LED investment project by the local government, which reduces investment risk. In addition, by cooperating with local investment companies and taking full advantage of the area’s human resources and market influence, the project’s market risk can be lowered.

The investment project has already demonstrated that if the future prospect of the market is good, then more projects can be started to compliment the company’s LED supply chain after the project is established. This will ultimately be beneficial to strengthening the competitiveness of the company’s overall LED supply chain.

It has been revealed by someone in relation to the company that Elec-Tech already has LED investment projects in Wuhu, Yangzhou, and Dalian. The company established a subsidiary in Bengbu (Bengbu Elec-Tech Optical Electronics) in 2012. Plans to expand investment in the region are due to growing demands from the downstream LED lighting market.
 
source: China Business News

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Today Philips Lumileds launches its proprietary CrispWhite Technology, yet another quality of light breakthrough in its portfolio, making whites appear vivid and bright while colors appear saturated. LUXEON CoB arrays with CrispWhite Technolog... READ MORE

For the first time there is a compact laser multi-chip package. Osram Opto Semiconductors can pack up to 20 blue laser chips in the new PLPM4 450 module. Instead of taking the laborious approach and constructing a light source from individual ... READ MORE