Release
IFC, a member of the World Bank Group, is making a $12.5 million equity investment in Lattice Power Corporation, a light-emitting diode (LED) chip manufacturer, to support energy efficiency technologies through faster adoption of quality LEDs in China.
Proceeds from IFC’s investment will be used to expand Lattice’s LED chip-manufacturing capacity in Jiangxi Province, one of China’s poorer regions. IFC’s financing will also provide funding for capital expenditures to help Lattice achieve national presence in China.
“IFC’s investment is instrumental to help Lattice adopt the highest environmental, social, and corporate governance business standards,” said Sonny Wu, Lattice Power Chairman and CEO. “We are committed to international best practices and would like to be the model of sustainable development for other LED companies in China.”
While China has a growing LED packaging and application industry, the production of high-quality LED chips is still in its early stages. Lattice produces chips using an innovative gallium nitrite-on-silicon process that results in less expensive LEDs and supports wider adoption of this energy-efficient technology.
One of IFC’s strategic priorities in China is to address the climate-change challenge through renewable-energy development, cleantech investments, and innovative energy-efficiency financing. Lattice Power’s LED technology offers higher efficiency, less pollution and more durability than conventional lighting.” said Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia. "Our partnership with Lattice will help to promote the local economy in Jiangxi Province, one of China’s poorest regions, by supporting a leading private enterprise."
LED light can provide the same level of brightness as a traditional incandescent light source using just one tenth of the electricity. It also does not use mercury, which is present in energy-saving compact fluorescent lighting technology.
The partnership with IFC will help Lattice create more than 500 jobs in one of China’s frontier regions in the next three years, and IFC expects to be a long-term investor in China’s private LED industry. The growth of the LED industry will enable the adoption of an energy-efficient technology in a wide range of applications, including laptops, television sets, monitors, displays, and general lighting.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
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