Taiwan Hon Hai Group, the anchor company of Foxconn Technology Group, has poured US$35 million to establish an LED company in Nanyan, Henan Province of mainland China together with polysilicon manufacturer GCL-Poly Energy Holdings Ltd. of mainland China. The new firm will seek partners in all of the mainland’s provinces to drum up LED streetlight business, pointed out by the group.
 
GCL-Poly is listed on Hong Kong Stock Exchange, reporting net income of HK$4.2 billion (US$555 million at US$1: HK$7.7) on revenue of HK$25.5 billion (US$3.3 billion) in 2011. Before the cooperation in the LED firm, the company has partnered with Hon Hai in clean-energy business.
 
Hon Hai noted that although GCL-Poly is a major strategic partner of it, the mainland Chinese manufacturer will not hold shares in the LED firm. Their cooperation will be based on the model that GCL-Poly bids for streetlight contracts while the firm supplies LED lighting and service. They share profits.
 
The two companies hope that the cooperation will maximize their share of the mainland’s clean-energy market by combining their respective specialties.
 
In fact, this LED firm is one part of Hon Hai’s US$146 million investment plan in the mainland announced recently. Other capital will go to the group’s precision, electronic components and electrical equipment businesses in the mainland.