Quanzhou LED Enterprises Brewing Entity Alliance to Develop LED Industry Together

　　Recently, the National Development and Reform Commission officially issued a document proposing that China will basically phase out incandescent lamps within five years. It is estimated that the market scale formed by replacing incandescent lamps will reach several hundred billion yuan. As the best substitute, the LED lighting industry is expected to quadruple within five years. With the entry of Sanan Optoelectronics, an upstream chip manufacturer, the LED industry in Quanzhou has also begun to make efforts in the R&D and application of midstream and downstream products, and is currently planning to establish an enterprise group to seize this development opportunity through collective efforts.

　　Establishing an Enterprise Group to Solve Financing Difficulties

　　There are two to three hundred LED enterprises in Quanzhou. Currently, only a few enterprises are involved in civil lighting, while the rest are concentrated in government procurement, hotels, offices, craft lamps, and other fields. However, as the trend of many countries strongly supporting civil lighting becomes increasingly evident, more and more enterprises are beginning to try to transform, and entering civil lighting has become a trend. However, the LED industry in Quanzhou has a small unit scale, low industrial agglomeration, and it is difficult to achieve economies of scale. Progress in attracting capital, technology, and talent has also been slow. Most enterprises are still distributed in midstream and downstream links such as packaging and applications, with little involvement in upstream epitaxial wafers and chips, and profit margins are very low. In addition, there are few leading enterprises, and the scale is generally small. Previously, a Pakistani businessman came to Quanzhou to place an order, ordering 9,000 lamps at once. Due to time constraints, no single enterprise was able to take the order.

　　To address the issues of small scale and insufficient capital, the Quanzhou LED industry established an Industrial Technology Innovation Strategic Alliance this year. However, since the alliance organization is merely a loose, non-independent legal entity and non-economic organization, this poses certain difficulties for the alliance's project cooperation and substantive business operations. Therefore, the alliance has proposed and implemented the concept of establishing an industrial alliance economic entity company, to serve as a common economic platform for the business operations of its member units in the future. #p#分页标题#e#

　　Pan Yiming, Secretary-General of the Quanzhou LED Industrial Technology Innovation Strategic Alliance, introduced that the most important work currently being carried out by the alliance is to promote the establishment of an enterprise group. According to the plan, the enterprise group will be jointly composed of enterprises involved in the upstream and downstream of the industrial chain, which can form complementarity in production and products. In addition, members will provide mutual loan guarantees to solve financing difficulties. This will provide substantive help in strengthening the closeness of cooperation within the alliance, the smooth implementation of innovation projects, and the pursuit of national policy support. The ultimate goal of the enterprise group is to integrate the capital and technological advantages of each member and to promote the listing of the entire enterprise group within five to ten years.

　　Sanan Optoelectronics Settles In to Complete the Industrial Chain

　　After Sanan Optoelectronics settled in Anxi, the Quanzhou LED industry already has a complete industrial chain from upstream chips to downstream applications, which also provides better opportunities for the development of the industry. To seize the indoor lighting market, substantial investment must be made in R&D and the expansion of production scale, which is also the main problem facing most LED enterprises in Quanzhou at present. In addition to solving this problem through enterprise groups, the reporter learned from the Quanzhou LED Industrial Technology Innovation Strategic Alliance that they are also discussing the feasibility of EMC (Energy Management Contract) with relevant departments.

　　The EMC model has been tried out in Guangdong. It is an energy-saving investment method that uses reduced energy costs to pay for the full cost of energy-saving projects. This model allows users to use future energy-saving benefits to upgrade factories and equipment, reducing current operating costs and improving energy utilization efficiency. This brand-new model can also solve the financing shortcomings of enterprises to a certain extent. This model involves cooperation among the three parties of government, enterprises, and financial institutions. For example, when the government needs to purchase a batch of LED products for street light renovation, financial institutions provide funds to enterprises to produce the products, and then the government pays a certain proportion of the energy-saving benefits to the financial institutions on a quarterly basis, with a time limit ranging from 3 to 5 years. This method solves the problems of large investment and high risk in LED street light demonstration projects, and also ensures the maximization of interests and minimization of risks for the three parties of production, consumption, and finance. #p#分页标题#e#