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China will invest $500 million to build a LED Industrial Park in Russia

On 30th of May, at the meeting of Energy Saving Projects held in Moscow, the Entrepreneurs Committee of the Shanghai Cooperation Organization announced that China will invest $500 million to construct a LED Industrial Park which is named “Shenzhen LED Industrial Park” in Russia. The expected output value in total will reach RMB 1.5 billion yuan annually when the project completed.

It is reported that the first phase of the industrial park there will be about 10 Shenzhen LED manufacturing companies involved. The LED industrial park will become the production base of series of LED products, economic-oriented the markets of Russian and other Shanghai Cooperation Organization member states. The project covers an area of ​​50-100 ha (hectare), integrated with plants, research laboratories, supporting residential living areas and other infrastructures. The enterprises in the industrial park will cover different application areas include LED packaging, LED indoor and outdoor lighting, LED display and other LED products.

According to the official statistics, Russia is Shenzhen’s 11th largest trading partner, and 10th largest export market. In 2011, Shenzhen’s annual import and export trading value with Russian was $2.91 billion, an increase of 12.3% comparing to that of 2010. Among this, export trading value was $2.66 billion, with an annual growth of 30.9%.

At the same time, Shenzhen enterprises have shown great interest in the Russian LED lighting market as some act provides that from January 1st, 2013, Russia will ban the production and sale of incandescent bulbs of which the power consumption is over 75 watts; from 2014, the production and sales of incandescent bulbs of which power consumption is more than 25-watt will be banned. This implies that there will be great demand for LED lighting products in Russia. For example, the consumers will then have higher probability to consider using LED bulbs instead of incandescent bulbs and energy saving light bulbs.

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