BYD invests $180 mln to improve LED industry chain

Shanghai December 10 (Gasgoo.com) BYD Co (01211.HK), China's largest rechargeable battery maker and an ambitious automaker, is accelerating the layout of its LED industry chain in Huizhou, Guangdong province, and has invested 1.2 billion yuan ($180 million) in its LED lighting project, First Financial Daily reported Friday.

BYD Huizhou LED facility ordered dozens of MOCVD (metallo organic chemical vapor deposition) equipments earlier, and has received five sets of MOCVD equipment, around $2 million per set, the relevant people in charge at the Management Committee of the Huizhou Zhongkai High-tech Industrial Development Zone and the Huizhou Daya Bay Economic and Technological Development Zone told the Daily.

Last year, the LED output value of BYD (Huizhou) Electronic Co Ltd was only 50 million yuan; this year it is expected to reach 200 million yuan, a person in charge at the Management Committee of Huizhou Daya Bay Economic and Technological Development Zone said.

BYD has been continually expanding its production capacity of LED lighting. Construction on the first phase of its LED products R&D and production base in Huizhou is already completed, while the second phase of the base is still undergoing construction. The first phase of the plant costing the company about 300 million yuan is now up and running, a source from BYD Huizhou said.  

The rapid development of the lighting industry is the main reason for BYD to enter the LED industry and to greatly enhance its industry chain, the same source said.

BYD's superiority in iron battery technology has offered its solar LED lights a host of performance and environmental advantages, which has ensured a successful implementation of several projects for the company, including Shenzhen East Overseas Chinese Town, Vanke base in Dongguan, etc.. That has also sent BYD LED products to Thailand, Australia and other overseas markets. This September, these products entered the world's largest supermarket chain Wal-Mart.

BYD claimed that it has a strong wafer R & D team, and has mastered the core technology of LED epitaxial process and some supporting packages, circuits, optical, thermal, mechanical parts technology. According to sources, BYD LED products have passed the harsh conditions of the EU energy efficiency certificate (ERP).

The goal of BYD LED is to become the leader by making healthy, low-carbon lighting leader, and become a benchmark brand and the first of the industry.

Huizhou has developed a pretty complete LED industry chain, from packaging, power efficient systematic solutions, R&D in lighting products, LED lighting applications to marketing and sales, according to a report from Huizhou Economy and Information Bureau.

In addition, Yang Pengfei, deputy secretary of the Management Committee of the Huizhou Zhongkai High-tech Industrial Development Zone, said yesterday that the local government is currently building a LID industry park covering an area of three square kilometers, and the industry scale of it expects to reach 10 billion yuan next year.