In order to create an energy-saving and environmentally-friendly future, the Beijing authorities have strongly supported the LED lighting industry. However, in the face of the double impact of falling product prices and oversupply, China may have one-fifth of LED lighting companies failing this year.
There are about 4,000 LED companies in China, which were initially attracted by tax breaks, subsidies and cheap industrial land, and companies have invested in the industry. These companies are now struggling with fierce competition in the industry, and product prices have been swayed over the past three years.
Just as excessive investment and weak exports have dragged down China's solar (photovoltaic) panels and wind turbines, China's LED lighting industry is now facing a strong reshuffle; China's LED lighting industry is the world's largest.
Pan Rongrong, director of Shenzhen Zhongming Semiconductor Planning, said in an interview: Now everyone is doing LED. The industry is very chaotic.
This is a typical problem in China. He said that once a new industry emerges, everyone will enter the market and immediately ruin the industry.
The goal set by the Chinese government is that by 2015 LED will account for 30% of the domestic lighting market share, which is more than three times the current level. Official estimates that this will save 35 million tons of coal per year.
Analysts said that if half of China's lighting uses LED lights, the annual savings will be equivalent to 2.5 times the annual power generation of the world's largest hydropower station, the Three Gorges Dam.
However, the demand in the domestic market is sluggish. Despite the subsidies, and the electricity bill will be reduced after use, the process of replacing LED lights in Chinese households has been slow, because the price of LED lights is much more expensive than traditional lighting. In addition, quality issues have also affected consumer confidence in it.
Light-off snoring industry experts and even some high-level LED companies believe that at least 20 LED lighting companies in China have been eliminated from the industry.
Many small LED lighting companies are facing difficulties, and perhaps they will not be able to reach the end. Qinshang Optoelectronics is a major LED street light manufacturer in China.
Five to ten years later, the industry will not have so many companies, she said in a telephone interview with Reuters at the company's headquarters in Dongguan.
Analysts believe that, given China's 60-70 LED capacity for export, industry consolidation may temporarily disrupt the global LED supply chain. However, in the long run, the restructuring of the industry pattern should make China's LED industry healthier and thus help to improve product quality.
At present, there are more than 20 Chinese LED companies listed in Hong Kong and the Mainland, and some of them have attracted private investment before listing. As these companies fell in profit, their share prices also fell sharply. Lehman Opto's share price has fallen by 48 compared to the peak in March, while the share price of Chau Ming Technology has fallen 37.
Industry experts believe that foreign lighting giants including Philips (PHG), Osram and General Electric (GE) should be able to stand out with strong financial power and advanced technology. German industrial giant Siemens (SIEGn) holds a partial stake in Osram.
Analysts said that domestic companies that are expected to become winners include Qinshang Optoelectronics, Foshan Lighting, NVC Lighting, Dehao Runda, and Ruifeng Optoelectronics.
Supporting policies Although the industry is expected to be integrated, the Chinese government is still committed to supporting the industry. The Ministry of Science and Technology of China said last summer that it plans to increase the scale of the LED lighting industry to 500 billion yuan ($80.23 billion) by 2015.
The Ministry of Science and Technology also plans to cultivate 20-30 leading companies with technological competitiveness in the LED chip-related industries, and include the industry in the industry catalogue further supported by the government. At present, the annual output value of this part of the industry is around 200 billion yuan ($32.09 billion).
China's LED manufacturers are currently heavily dependent on foreign chips, and chip costs have accounted for half of the cost of the product. Introducing chip technology to the domestic market will help reduce costs. For China to achieve its own LED-related goals, reducing costs and improving technology are key.
McKinsey wrote a report saying that the annual compound growth rate of China's LED lighting market may exceed 40 by 2016, and the share of the domestic overall lighting market will reach 46. This is also a global trend.
Zhu Jianqin, the director of Oriental Lighting, which is listed in Hong Kong, said: I think that one day the LED era will come.
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Technical Specifications of Vibrating Fluid Bed Dryer
|
Model |
Fluid bed area (m2) |
Inlet air temperature(℃) |
Outlet air temperature (℃) |
Water evaporation capacity (kg/h) |
Vibration motor |
|
|
Model |
Power (kw) |
|||||
|
ZDG3×0.3 |
0.9 |
70 ~ 140 |
40 ~ 70 |
20 ~ 35 |
YZS8-6 |
0.75×2 |
|
ZDG4.5×0.3 |
1.35 |
70 ~ 140 |
40 ~ 70 |
35 ~ 50 |
YZS10-6 |
0.75×2 |
|
ZDG4.5×0.45 |
0.025 |
70 ~ 140 |
40 ~ 70 |
50 ~ 70 |
YZS15-6 |
1.1×2 |
|
ZDG4.5×0.60 |
0.7 |
70 ~ 140 |
40 ~ 70 |
70 ~ 90 |
YZS15-6 |
1.1×2 |
|
ZDG6×0.45 |
0.7 |
70 ~ 140 |
40 ~ 70 |
80 ~ 100 |
YZS15-6 |
1.1×2 |
|
ZDG6×0.6 |
3.6 |
70 ~ 140 |
40 ~ 70 |
100 ~ 130 |
YZS20-6 |
1.5×2 |
|
ZDG6×0.75 |
4.5 |
70 ~ 140 |
40 ~ 70 |
120 ~ 170 |
YZS20-6 |
1.5×2 |
|
ZDG6-0.9 |
5.4 |
70 ~ 140 |
40 ~ 70 |
140 ~ 170 |
YZS30-6 |
2.2×2 |
|
ZDG7.5×0.6 |
4.5 |
70 ~ 140 |
40 ~ 70 |
130 ~ 150 |
YZS30-6 |
2.2×2 |
|
ZDG7.5×0.75 |
5.625 |
70 ~ 140 |
40 ~ 70 |
150 ~ 180 |
YZS40-6 |
3.0×2 |
|
ZDG7.5×0.9 |
6.75 |
70 ~ 140 |
40 ~ 70 |
160 ~ 210 |
YZS40-6 |
3.0×2 |
|
ZDG7.5×1.2 |
9.0 |
70 ~ 140 |
40 ~ 70 |
200 ~ 280 |
YZS50-6 |
3.7×2 |
|
ZDG7.5×1.5 |
11.25 |
70 ~ 140 |
40 ~ 70 |
230 ~ 330 |
YZS50-6 |
3.7×2 |
|
ZDG8×1.8 |
14.4 |
70 ~ 140 |
40 ~ 70 |
290 ~ 420 |
YZS75-6 |
5.5×2 |
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