Savings drive LED market in China

The market for using energy-saving light emitting diodes (LEDs) at commercial venues such as malls and offices is increasingly opening up in China despite multiple problems troubling the sector, the China Securities Journal reported on Tuesday.

Promotion of LEDs has mainly taken place at commercial buildings, government offices and malls so far in China, Li Guoping, chairman of the Guangzhou Hongli Opto-Electronic Co., Ltd., told the newspaper.

Government offices and malls have recognized the benefits of LEDs even though they are more expensive than traditional light sources, Li said, adding that a 30-storey building, if using LEDs instead of traditional lights for 8-10 hours per day, may offset the cost of the initial installation of LEDs with the electricity cost they save in 15 months.

The Chinese government has also encouraged the sector's development, aiming to elevate the industry's total value to 500 billion yuan (79.4 billion U.S. dollars) by 2015. Meanwhile, it is planning to support 20-30 enterprises in becoming leading LED enterprises by then.

The report said that China currently boasts an estimated 8,000 LED companies, the products of which are of varying quality. "One product labelled as an LED can sell for nearly 200 yuan, while another just sells for 20 yuan," a sales manager at a light mall in Guangzhou said.

The report further explained that the absence of unified product standards are a major cause of the disorder currently facing the market.

However, Guangdong Province in south China is leading the nation by mapping out specific plans for the development of LEDs. The province has guided universities and research institutes to work with more than 20 local LED enterprises to jointly release technological indexes for LEDs, according to the report.

More city governments in the province have been encouraged to work with universities to set up labs or research centers for technological innovation, it added.