A signing ceremony for strategic cooperation between China Pingmei Shenma Group and China Silian Instrument Group Co was held on Feb 24 in the city of Pingdingshan, Central China’s Henan province. During the ceremony, both parties signed an agreement for an LED manufacturing base.

Liang Tieshan and Yang Jianguo, chairman and general-manager of Pingmei Shenma Group, respectively, and Xiang Xiaobo, chairman and general-manager of Silian Instrument Group Co, attended the ceremony.

Zhang Guowei, mayor of Pingdingshan, was on hand at the ceremony. Pingmei Shenma Group is a giant State-owned enterprise with both operating revenue and gross assets valued over 100 billion yuan ($16.27 billion). The company has made great contributions to the city’s economic and social development, Zhang said during his speech.

Silain Instrument Group Co is a Chongqing-based State-owned key enterprise with strong technical strength and a fully fledged industrial system. It is particularly competitive in respect to technology and industrial chain.

The LED manufacturing base is not only a win-win cooperation between the two groups, but will also promote economic structure adjustment and the transformation of Pingdingshan, which is a resource-based city facing a relatively tough task in economic transformation and upgrade, according to Zhang. By integrating bilateral advantages, a Central Plains, or Zhongyuan-based, LED base with global influence will be built in Pingdingshan, Zhang said.

The project will renovate Pingmei Shenma Group’s former mining cap lamp factory and create a LED mine lighting products base, the only one of its kind in China. After reconstruction, the new factory will be equipped with four LED lighting assembly lines with an output of 500,000 sets per year.