9 February 2012

Aixtron forms strategic alliance with Minsheng Financial Leasing in China

Minsheng Financial Leasing Co Ltd (MSFL), China’s main non-banking financial institution, and deposition equipment maker Aixtron SE of Herzogenrath, Germany have announced a strategic alliance for joint marketing of leasing options in China.

Picture: MSFL's Feng Wang and Aixtron's CFO Wolfgang Breme sign the MoU at MSFL’s headquarters.

The new agreement defines a strategic cooperation to promote the distribution of Aixtron’s metal-organic chemical vapor deposition (MOCVD) equipment to customers across China with the aid of MSFL’s financial services. Feng Wang, president of MSFL’s Finance Leases strategic business unit, and Aixtron’s chief financial officer Wolfgang Breme signed the memorandum of understanding (MoU) at MSFL’s headquarters in Beijing.

“This exciting strategic cooperation will enable LED manufacturers to draw upon the most appropriate financing opportunities for the acquisition of key enabling MOCVD equipment,” comments MSFL’s CFO Rong Wang. “Due to temporary restrictions in China in the availability of financing, this news is expected to be received very positively,” she adds. LED technology has been defined as one of the key industries (energy conservation/environmental protection, new materials) in China´s 12th 5-year plan.

“The leasing of MOCVD equipment in China is a relatively new concept, and we are confident that this initiative will be widely appreciated by LED manufacturers,” says Breme. “This cooperation, with one of Asia's largest and fastest growing leasing companies, is significant for us because it enhances our customers’ financial flexibility,“ he adds.

MSFL was established in April 2008 and was one of the first five leasing companies approved by the China Banking Regulatory Commission (CBRC). It is co-sponsored by China Minsheng Banking Corporation Ltd (81.25%) and Tianjin Port Free Trade Zone Investment Co Ltd (18.75%) with total registered capital of CNY3.2bn. MSFL provides financial leasing products and services to domestic and foreign large and SME enterprises.

“Aixtron’s role and commitment to China is to deliver the essential key enabling technology that the emerging LED lighting market needs, taking full advantage of Aixtron’s technology and embedded expertise,” says Aixtron’s president & CEO Paul Hyland. “Our joint goal with Minsheng is to facilitate the most appropriate financial instruments to support Chinese manufacturers as they strive to become global players,” he adds.

According to internal market research analysis from GBRA/MBL last November, China’s LED market showed annual growth of 45% in 2010 and is expected to grow in output value from CNY120bn in 2010 to CNY500bn during the 12th 5-year plan, representing total growth of 317%. These projections reflect the fact, that in 2011, China was the biggest regional buyer of MOCVD equipment, accounting for 58% of all global shipments.

See: Aixtron Company Profile

Tags: Aixtron MOCVD LEDs

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