After being a distressed industry for a long time, LED lighting has recently become the cash cow again. Xishan Coal and Electricity Power announced their entry to the LED industry, which is very weird, since this enterprise has nothing to do with LED even lighting business. Followed by the Sun Lighting, which has placed a new investment project: “Industrialization project of micro mercury energy-saving lamps”. Sections of this project transformed into “Industrialization project of white SMD LED lighting products with an annual output of 20 million (sets).” Furi Electronics also indicated that the funds will be sought to focus on the development of LED industry.
The movements of these three companies triggered buzz. The downturn of LED industry has maintained for a very long time. Does this new investment climax in the LED industry mean the new opportunities for LED manufacturers?
70% domestic LED companies suggested that in 2012, their sales fell down. A recent report of debt crisis of Horizons Photoelectric caused panic in the LED industry, making the entire white SMD LED industry uptight and sensitive. Early this month, Haobo Photoelectric occurred crisis, causing huge anxieties about whether LED lighting industry will follow steps of PV industry.
From the situation of listed companies, in the year to the third quarter, more than 70% LED companies dropped in sales. Potentials exist under the quick success of white SMD LED industry. Overcapacity, vicious competition frequently occurred. Various enterprises produced products with different qualities. It seems that everyone insisted on seizing limited marketing resources even in the condition of long-term loss. LED Tunnel Light industry reshuffle caused by overcapacity is inevitable.
Given such distressed background, some enterprises outside the industry tried hard to swarm into it. On 29th of November, Xishan Coal and Electricity collaborated with Guangzhou LEDWAY to established a new companies in Taiyuan – Xishan LEDWAY Co., Ltd. The initial registered capital is 10 million yuan. Products include explosion-proof lighting devices used in mining, white LED sources, road lighting products and other lighting products for commercial purpose. The estimated annual sales is around 30 million yuan. The funder plans to establish the largest high-power LED lighting production base in Shanxi Province in five years.