San’an Opto and Nationstar Sign Three Year LED Chip Procurement Agreement

San’an Optoelectronics (San’an Opto) announced on April 16, 2014 that the company has signed a three year strategic agreement to sell LED chips to Foshan Nationstar (Nationstar). 

Under the three year agreement, Nationstar is to purchase around RMB 250 million (US $40.2 million) LED chips in the first year from March 2014 to March 2015. The type of product and amount to be purchased over the remaining two years in the agreement will be discussed in Dec. 2014, upon which the companies will sign a supplementary agreement. 

Under the agreement, San’an Opto will provide Nationstar with technical support and services and become a main Nationstar LED chip supplier. The agreement is to raise brand value and increase market share for the two companies. Moreover, the agreement states that the companies will act as cooperative partners in any additional projects. 

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