Zhen Mingli set up LED epitaxial wafer manufacturing plant in Yangzhou with a total investment of 30 million US dollars

On October 14th, Zhen Minglifa announced that the company has entered into an agreement with the Yangzhou Economic and Technological Development Zone Management Committee to set up a manufacturing plant in Yangzhou to produce LED epitaxial wafers, chips, packages and lighting modules. It is worth 30 million US dollars (HK$234 million) and is expected to start production in June 2010.

It is reported that the project will include the purchase of 30 31 MOCVD equipment. The consideration will be paid by the Company to MOCVD suppliers on a deferred basis in cash and cash equivalents. 10 of them are scheduled to be put into operation in June 2010, and another 110 are scheduled to be installed and put into production in the second half of 2010. The next 10 are scheduled to be installed in 2011. After all production, the total capacity of 30 MOCVD equipment is 6 per month. Ten thousand epitaxial wafers, the first phase of 10 MOCVD equipment will be able to produce 20,000 epitaxial wafers per month, which is estimated to reduce the cost of LED terminal products by 10-15%. Will the wholly-owned subsidiary be changed by Yangzhou Economic and Technological Development Zone? Each MOCVD equipment purchased will be subsidized by 10 million RMB, and a 15% preferential corporate income tax rate will be granted.

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