MyLED invests in LED manufacturing plant in Malaysia

Nov. 28, 2011
MyLED has established agreements with several international and domestic companies to grow its SSL business and establish an LED manufacturing capability.
MyLED Group, a Malaysia-based solid-state lighting (SSL) manufacturer, has signed a number of agreements with international and local companies that will help the company to develop its lighting business and establish an LED manufacturing capability.

The company’s MyLED Opto Technology subsidiary already provides LED-based lighting products and plans to commence production of LED components in January 2012, according to CEO Jetson Lai. “Based on our production roadmap, by 2014 we will be able to produce 150 million LED components per month,” he said, adding that the company is investing 175 million Ringgit (USD55 million) to expand its plant to “cater for the growing demand for LED lighting.”

MyLED has signed memorandums of understanding (MoUs) with six original equipment manufacturers (OEMs) from Germany, Japan, Taiwan and Malaysia. Three of the OEMs – Amprex International Sdn Bhd (Japan), Light-Trend Optoelectronics Technology Co., Ltd (Taiwan) and Osram Opto Semiconductors (Germany) – will also provide MyLED with technology and expertise in research & development.

“With Amprex and Light-Trend’s technology, we have started manufacturing SSL fitted with Osram’s LEDs, and have installed them in various public places in Malaysia,” said Lai. “The quality of our SSL is well known, and we have recently secured SSL contracts for the quality-conscious Japanese market.”

Lai told LEDs Magazine that MyLED will not manufacture LED chips, but will instead purchase chips from Osram.

By becoming the first company in Malaysia to manufacture both LEDs and SSL products, Lai believes this will “bring prices down by 50 per cent, and enable us to compete with the Chinese manufacturers in terms of pricing in China and worldwide. However, we will offer German-quality LED lighting with up to five years warranty.”

Lai said that MyLEDs components will be “highly affordable” in Malaysia and in the key markets of Japan, China, South Asia and the African continent. “This will also open up new opportunities in Europe and the US where consumers are also concerned about energy efficiency and the payback period,” he said.

MyLED has also signed sales-related MoUs with eight distributors and agencies in Taiwan and Malaysia. Based on these various agreements, MyLED expects that its cumulative sales of lighting components over the next five years will reach more than 2 billion Ringgit (USD632 million).

Joint venture in Sri Lanka

MyLED also signed a joint venture agreement with MyLED Lanka (Pvt) Ltd of Sri Lanka to penetrate into the South Asian market. MyLED Lanka (Pvt) Ltd is MyLED’s first overseas investment and is a joint-venture company that will cater to the South Asian consumers. The company will set up a manufacturing plant and distribution center in Colombo, Sri Lanka, which is expected to be operational in the first quarter of 2012. Initial production will reach 30,000 pieces of SSL per month, growing to 100,000 pieces monthly by 2014.

“By virtue of proximity to the market, we will be able to provide quality products at affordable prices and provide good after-sales services,” said Lai. “Over the next five years, we expect sales of SSL and LED to be in excess of RM200 million.”

Government support

Datuk Seri S.Subramaniam, Minister of Human Resources and the lead Minister for the Business Services National Key Economic Area under the Economic Transformation Programme, witnessed the signing ceremony. He said: “MyLED Group’s focused investment in LED technology sets the company on a strong foundation for growth as this is in line with global trends and the Malaysian government’s emphasis on building a green technology industry.

“In addition, Malaysia will stop all production, import and sales of incandescent light bulbs by or before January 2014, as part of our efforts to save power and to help cut greenhouse-gas emissions. Currently, less than 5% of lights in Malaysia are LED lighting, providing LED companies with a ready untapped domestic market.”