Crystal electric sound clarification: off the plant, production is misinformation

[LED] - LED Taiwan epitaxial crystal power plant (Epistar) foreign media reports of the clarification, Taiwan plane crystal electric plant, cut off the message is not correct, the company's five factory and Hsinchu canyuan Ping Zhen two factory revenue share of less than 5%, the adjustment is because the company has several mergers and acquisitions, the space is too a small factory to make the overall requirements.

EPISTAR said, LED industry as part of the mainland market China LED epitaxial industry continued expansion in 2015, making the already overcapacity situation is more serious, resulting in market prices fell sharply, due to the increasingly fierce competition environment, crystal electric in 2015 started to promote the first new production capacity, machine upgrade, hex process equipment production and new business layout and other measures to reduce the cost and optimize the product portfolio, strengthen the competitiveness of the future.

Crystal electricity experienced several mergers and acquisitions, resulting in plant dispersion, the group currently has 15 production sites in Taiwan and the mainland. Because the crystal electric Hsinchu five factory and a subsidiary of Ping Zhen canyuan factory space is too small, does not meet the needs of future capacity planning and layout of a new business group, and the production cost is high, due to the low utilization rate of production capacity, for the activation of assets and reduce expenses, the resolution of the board of directors of five crystal electric factory sale; subsidiary canyuan Ping Zhen factory is in the fourth quarter for production; some discontinued plant machine were transferred to other plant replacement or centralized production, in order to reduce production costs.

EPISTAR pointed out that the two workshop production plan moves, the proportion of revenues to crystal electric group five percent, and part of the equipment has been relocated to other centralized factory production, no significant impact on the company's operations, so that special message released a major external clarification.