Mergers and acquisitions of a number of companies or mergers and acquisitions will become a new trend in the LED industry

The past two years, LED industry overcapacity, blind production and the dilemma of vicious price war not only has not improved, but intensified, and the 2011 Shenzhen junduoli, vision optoelectronics, Zhongshan kabang went bankrupt in 2012, large field photoelectric hibo photoelectricity LED enterprise crisis are frequent, more let LED industry downturn one disaster after another. Enterprise merger and integration phenomenon is It is often seen. With the combination of Elec-Tech and NVC, the industry that will accelerate the pace of industry mergers and acquisitions.

KingSun days before the announcement that will issue a total size of 800 million yuan of bonds, of which the first phase will raise 400 million yuan. KingSun secretaries Wei Li said, the money will be used to improve the layout, timely carry out mergers and acquisitions and expansion of EMC (energy management contract) new formats. The company is currently in the LED industry chain and business with the acquisition of complementary objects KingSun suitable nature of the enterprises, including large enterprises and small and medium-sized enterprise object. "

In addition, the wave of Shandong Huaguang optoelectronics Limited by Share Ltd chairman Zheng Tiemin also said that the focus of the development of the wave of Huaguang LED industry is mainly upstream, there are mergers and acquisitions integration midstream packaging business plan.

"The LED industry on the cash and the requirements of high technology, this year with a series of national policies to support the introduction of LED and gradually implemented, but the lack of sufficient funds or some successful technology project enterprises will seek to introduce partners, so the industry integration phenomenon. Wei Li believes that due to the fierce competition in the LED industry and there is no competition will not be able to survive, the industry is expected in the future will be a strong combination of mergers and acquisitions in the industry consolidation trend.