China Rare Earth, Siemens to launch China JV

Oct. 21, 2009 (China Knowledge) - China Rare Earth Holdings Ltd<0769> will establish a joint venture in China with Siemens' OSRAM, said the Chinese company in a statement on Monday.

The JV, which will have a registered capital of EUR 14.5 million, will be engaged in R&D, production and sales of phosphor products for the lighting industry, according to the statement.

The JV will involve a total investment of EUR 43.5 million, and be 49.9% held by China Rare Earth and 50.1% by OSRAM.

China Rare Earth said that it will use internal resources and bank loans to fund a capital contribution of about HK$83.2 million.

The JV will produce up to up to 2,000 tonnes of tri-band phosphor annually when it is in full operation, and products will target both China and overseas market.

China Rare Earth, based in Wuxi, Jiangsu Province, is mainly engaged in the manufacture and sale of rare earth products and refractory products in China, Japan, Europe and the U.S.