failing firms cloud china\'s led lighting vision

HONG KONG (Reuters)-
This year, one Chinese LED lighting company is likely to close down every five homes because falling prices and oversupply have hit an industry, and Beijing has invested in trying to build an energy industry --
An efficient future
About 4,000 companies in China are being tempted by tax breaks, subsidies and cheap land for factories, producing LEDs.
Now, they are caught in fierce competition, and prices have fallen by half in the past three years. Just as over-
The decline in investment and exports has dragged down the Chinese champions of solar panels and wind turbines.
The world\'s largest LED lighting industry is now facing a huge impact. up.
\"These days home are doing LEDs.
Owen Pan, global marketing director of LED manufacturer civiliight Shenzhen Semiconductor Lighting Co. , Ltd. , said in an interview: \"The industry is a mess . \".
\"This is a typical issue related to China,\" he added . \".
\"Whenever a new industry is introduced here, a large group of speculators will jump at it and quickly turn it upside down.
\"More civilians.
Shenzhen\'s story LED Light Engine factory is surrounded by dozens of competitors.
When Pan Guoliang and his colleagues set up the company in 2006, they were the pioneers of an industry that the central government was determined to promote as part of China\'s green technology development.
Beijing has set a goal that led will account for 30% of the domestic general lighting market by 2015, more than double the current level.
According to official estimates, this will reduce coal use by 35 million tons per year.
If half of the lights in China are LEDs, then the power savings will be 2.
Analysts say the annual output of China\'s Three Gorges Dam is five times that of the world\'s largest hydropower project.
But domestic demand is weak.
Despite the promise of subsidizing and reducing electricity bills over time, Chinese families have been slow to turn to LEDs because they are still much more expensive than traditional lights.
Quality problems also hurt consumer confidence.
According to industry experts and even some LED company officials, at least 20% of China\'s LED lighting companies may be forced out of business.
\"Many small LED lighting companies are suffering and may not be able to see light at the end of the tunnel,\" said Li Wei, secretary of the board of 002638 of Dongguan Jinsun optoelectronic Co. , Ltd.
SHENZHEN, China\'s leading manufacturer of LED street lamps.
\"There won\'t be so many businesses in five to ten years from now,\" she told Reuters by phone, based in Dongguan, Guangdong province, the LED manufacturing center.
Analysts said industry consolidation could temporarily undermine the world\'s leading supply chain, given China\'s 60-70% capacity for exports.
But in the long run, this adjustment will lead to healthier LED industry in China and better product quality.
Shares of more than 20 Chinese LED companies listed in China and Hong Kong fell, some of which attracted private equity investment before listing.
Ryderman optoelectronic Co. , Ltd. 300162
Shenzhen dropped 48% from a peak, and Shenzhen uniumin Group Co. , Ltd (300232. SZ)
Lost 37%.
Philips Electronics and other foreign lighting giants NV (PHG. AS), Osram -
Siemens, German engineering group (SIEGn. DE)-
General Electric Corporation (GE. N)
Industry experts say they should be winners because of their financial impact and technical expertise.
Philips and Osram have been focusing on traditional lighting in China, and they have increased the production of led.
Osram, with 8,000 employees in China, began building the first
LED chip packaging plant in China in August, a 100,000-square-
The rice complex in the eastern city of Wuxi uses chips made in Germany and Malaysia.
Domestic award-winning enterprises may include Foshan Jinsun Electric Lighting Co. , Ltd. 000541.
NVC Lighting Holdings Limited (Shenzhen)2222. HK), Elec-
Technology International Limited002005. SZ)
Shenzhen Youlian optoelectronic Co. , Ltd. (Shenzhen)300241. SZ), analysts say.
So far, led is mainly used for street lights, shopping malls, high-end hotels, office buildings, etc.
To accelerate the broader shift to efficient lighting, China began phasing out wasted incandescent lamps in October, along with other countries such as the United States and Japan.
The semiconductor diode that converts current into light is more compact than the two leading products of household and commercial lighting (CFLs)
And incandescent lamps.
LED lights have a longer life and are 10 times more efficient than incandescent lamps.
Some industry experts predict that in 10 years, these lights will bring more environmental and economic benefits than any other cleaning technology, including high technology.
Voltage Transfer, electric vehicle, smart grid or renewable energy.
LED in North America
According to McKinsey Consulting\'s 8% report on the global LED industry, headquarters lighting accounts for about 2012 of the entire lighting market.
Using these lights in the US alone saves 2.
6 megawatts of electricity per year, equivalent to an average of more than 200,000 of electricity demand in the United StatesS.
According to 2011 research reports prepared by navigation consulting for the United StatesS.
Department of Energy.
China is the world\'s largest energy consumer and carbon emitter, with general lighting accounting for 12% of annual electricity consumption.
About 70% of China\'s electricity comes from coal.
Although the market is expected to be volatile, the Chinese government will remain committed to the industry.
The Ministry of Science and Technology said last summer that it plans to create a 500 billion yuan LED lighting industry by 2015.
The company also plans to train 20 to 30 technical competition industry leaders involved in LED chip manufacturing, packaging or fixture manufacturing and nominate the industry-
Now the annual output value is about 200 billion yuan-
Further support from the government
It does not identify the leading company.
Ben Lin, a senior analyst at LED inside, an international LED consultancy in Shenzhen, said they may include some listed companies as well as unlisted companies such as Shenzhen spark Optoelectronic Technology Co. , Ltd. and Shenzhen collection Enterprise Co. , Ltd.
Investment in Zhongshan junneng hi-
Technology photoelectric lighting Co. , Ltd.
At present, Chinese LED manufacturers rely heavily on foreign companies in terms of chips, which account for half of the production cost of lamps.
Bringing this technology back home will help reduce costs.
If China is to achieve its dominant goal, it is crucial to reduce costs and technological progress.
According to global trends, by 2016, the annual compound growth rate of China\'s LED lighting market may exceed 40%, accounting for 46% of China\'s overall lighting industry. McKinsey\'s report says.
\"I believe the LED era will come one day,\" said Zhu Jianqin, executive director of Hong Kong --
Listed Oriental lighting Holdings Limited (0515. HK)
Mainly engaged in LED road lighting manufacturing.
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