Zhejiang coastal LED holiday lamp merger and reorganization of enterprises against seemingly impossible odds

By June 24, 2011, Nitto electronics, light industry, flying Shengda lighting, light industry, optoelectronics, Daming Li Wei Zhejiang good technology, double photoelectric, light industry, WAN Xin Hua Jing Dong Xiang, photoelectric photoelectric, photoelectric Jia Yang 11 growth better LED enterprise restructuring the establishment of the Zhejiang General Electric Electronic Technology Co., Ltd. was formally established.

90 production lines at full capacity, Nissan LED lights with light bulb 25 million grain - set up less than a year, Zhejiang Guang Pu electronic technology limited company, has become the province's largest production line of LED enterprises, occupy the coastal city's LED lights with half light bulb yield.

It is worth mentioning that the universal company is by 11 Dongcheng Town with the industry of small enterprises in the form of shares combined heavy composition. What makes the original "better be the head of the business owners do:" the dissolution of his own most willing to do business? What is the fate of the holiday lamp industry built to such a "carrier"?

Time goes back a year ago -

The problems outside the storm

Since the financial crisis, LED products have been sluggish prices, sales continued to decline. But in this period, the national LED production capacity has tripled, to make the whole industry intense competition.

Festival lights are the traditional characteristics of the waterfront industry. In recent years, vigorously promote the transformation and upgrading of the festival lighting industry, the majority of enterprises to convert energy saving and environmental protection as the main features of the LED light bulbs. In the Dongcheng Town traditional festival lamp's largest production base, in 2010 a year invested about 80000000 yuan, the new LED production line 98, a total of 120, once lit up the holiday lamp industry to cast brilliant prospects.

However, because of the financial crisis caused a sharp turn LED sales situation, just the transformation of the coastal LED industry in the bad situation has exposed many "congenitally deficient": most of the production scale is small, the low-end products without core competitiveness, homogenization phenomenon is very prominent, management is not standardized; low technology content and market anti strike capability poor product and decentralized business model, make the equipment, personnel and procurement sales channels can not play to the highest level, so the whole industry appeared disorderly market competition, lower prices with each other, It is often seen. undermining each other.

Even more serious is that a large LED production enterprises from Guangdong, the sales point will be located in the sea, and the price of 30% promotions, provoking a brutal price war. "Hand to hand combat" so that LED companies off the coast, many enterprises are facing the test of life and death.

The problems outside the storm, panic filled the entire LED industry, especially for smaller companies, facing greater pressure, some people even pessimistic predictions of the industry over the next LED".

Desperate living

How to make the LED industry to get out of the dilemma? What lessons should be drawn from the face of unprecedented difficulties, entrepreneurs are thinking, party and government leaders are thinking. The two sides sat down again and again to find out the crux of the problem and seek countermeasures.

In order to better understand the industry status quo, Dongcheng Town Party committee and government of the most concentrated coastal LED industry initiative funded organizations, entrepreneurs in Guangdong, Jiangsu, Shanghai and other places investigation. After a number of visits and discussions, entrepreneurs have identified the development of the idea of holding together to build a number of enterprises gathered by the LED industry aircraft carrier bold ideas began to surface. "We in the technology investment, the introduction of high-end talent, new product development and advanced enterprises compared to the gap is too big, and then continue to disorderly competition continues, we don't want to live!" the original Lin Haisheng amounted to light industry chairman Yang Sheng has deep feeling.

In support of the municipal government and Dongcheng Town Party committee and government and various departments, from the first half of last year, 11 companies Dongcheng Town responsible person sat together to discuss matters relating to the reorganization. In the face of the grim situation, every entrepreneur has to do their best to explain their selfishness, determined to join hands to form a "big family", and soon the new company charter, the formation of the board of directors, management and other departments have reached a consensus.

By June 24, 2011, Nitto electronics, light industry, flying Shengda lighting, light industry, optoelectronics, Daming Li Wei Zhejiang good technology, double photoelectric, light industry, WAN Xin Hua Jing Dong Xiang, photoelectric photoelectric, photoelectric Jia Yang 11 growth better LED corporate restructuring established Zhejiang comboom Electronic Science and Technology Co. the company was officially established.

The company 's' aircraft carrier' sail, is a successful attempt to merge and reorganization of LED companies, but also for the transformation and upgrading of the festival lamp industry opened a new world. "Dong Cheng town Party Secretary Chen Xiandong said.

Set sail

In July last year, the company was officially put into operation, LED aircraft carrier began to test the water.

And in the past through the association of different companies, this integration is very thorough, the original 11 companies also canceled all machines and equipment according to the principle of low price of the acquisition from the shares included in the new enterprise, focus on the production, handling of credits and debts by the original enterprises themselves, materials, semi-finished products and product inventory at cost price by the restructuring of corporate acquisitions, enterprises the production mainly concentrated in Zhejiang, Zhejiang, East Sea Shengda double 3 factory.

The establishment of the new company, chairman and general manager of only one, "the boss" who became "Directors" duties, the main enterprises willing to work in new enterprises, good writing and coordinating the work of the director of the office, strong ability of marketing marketing manager......

Vacated plant and resources for the development of light strings and other production