Vying the lucrative Japanese market, leading Korean LED manufacturer Lumens announced it has signed a joint venture agreement with Japanese company TN Holdings, according to a Japanese media SankeiBiz report.

The two companies will be cooperating on expanding their presence in the Japanese lighting, automotive and display backlight markets.

A new company Lumens Japan has been established by the two companies through the joint venture. Lumens and TN’s stake in the new company is respectively 51% and 49%.

Lumens Japan has begun operations since Feb. 5, 2015 and its main business is in LED luminaire, and other electronic components sales.

Lumens revenue targets in the Japanese market for 2015 is 500 million Japanese Yen (US $4.21 million), and plans to expand revenues to 2 billion Japanese Yen by 2016.

Founded in 2004, Lumens is the world’s eighth largest LED manufacturer, according to the report. The company’s production capacity LED backlight modules for LCD displays and smartphones has reached 500 million, and is the world’s third largest manufacturer.