Hon Hai Announces US$35M. Investment in LED
Jul 19, 2012
The Hon Hai Group recently announced opening an LED venture in mainland China at a cost of US$35 million.
People familiar with the investment plan pointed out that polysilicon manufacturer GCL-Poly Energy Holdings Ltd. of mainland China is a strategic partner in the investment.
GCL-Poly is listed on Hong Kong Stock Exchange, reporting net income of HK$4.2 billion (US$555 million at US$1: HK$7.7) on revenue of HK$25.5 billion (US$3.3 billion) last year. The company has entered into cooperation with Hon Hai in clean-energy business before the LED venture.
The group pointed out the new venture, headquartered in Nanyan, Henan Province, will seek partners in all of the mainland's provinces to drum up LED streetlight business.
Hon Hai pointed out that although GCL-Poly is a major strategic partner of it, but the mainland Chinese manufacturer will not hold shares in the LED venture. Their cooperation will be based on the model that GCL-Poly bids for streetlight contracts while the venture supplies LED lighting and service. They share profits.
The two companies hope that the cooperation will maximize their share of the mainland's clean-energy market by combining their respective specialties.
The venture in included in Hon Hai's US$146 million investment plan in the mainland announced recently. Other capital will go to the group's precision, electronic components and electrical equipment businesses in the mainland.
source & copyright: CENS