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Until October 2010, Jiangsu Jixing New Materials Co., Ltd. (hereinafter referred to as Jixing New Materials) invested by Huantai Group was established. The ring group's tentacles have extended to the hot LED industry today.
On June 28 this year, sapphire crystals weighing 101.35 kilograms were officially unveiled at Jixing New Materials. 
At the scene of the new product launch, Wang Lubao was very enthusiastic, and he was also very vocal in his speech. After all, the trial production of the first furnace was successful, which is of great significance for Jixing new materials. Wang Lubao said with a smile, "It’s difficult to make it easy, and now the hardest part has been overcome." The implication is that the cutting and polishing process in the latter stage is naturally a matter of course. As a private entrepreneur born in the grassroots, winning the battle has always been Wang Lubao's secret magic weapon. 
It is understood that Huantai Group's total revenue in 2010 was 3.3 billion yuan, and it is estimated that this year's revenue will reach 6 billion yuan. According to the plan, the Group's revenue in 2012 will reach 10 billion yuan, of which the sapphire substrate business will contribute more than 10% of revenue.
Turn to LED
Wang Lubao, who started from the clothing industry and the fertilizer industry, began to join the photovoltaic industry in 2003. It has experienced the ebb and flow of the photovoltaic industry. Until October 2010, Wang Lubao began the fourth battlefield of life - the most upstream of the LED industry chain. Sapphire crystal growth and substrate fabrication.
With the establishment of Jixing New Materials, the tentacles of Huantai Group have extended from solar silicon materials to the entire LED lighting materials market. Wang Lubao firmly pointed out to the Gaogong LED reporter that "one of the key points of the Huantai Group is to make Jixing new materials stronger and bigger, and the goal of the sapphire substrate plan is to be the largest in the country."
For private entrepreneurs, not relying on the government's financial subsidies, saving more than 3 billion yuan of investment, it can be seen that Wang Lubao has made a bloody project for the sapphire project.
It is reported that the sapphire substrate, the technical team of Jixing New Materials and the American experts jointly developed a sapphire crystal with a weight of 101.35 kg, a diameter of 360 mm and a height of 260 mm, which can be processed into 2 inches, 4 inches, 6 Inch, 8-inch sapphire ingot, wafer.
The crystal was successfully released, and Wang Lubao’s confidence in the sapphire project increased greatly. He said with a smile that “the most difficult one has already been overcomeâ€. Crystal growth is just one of the processes, but it is also the most critical and difficult process. In contrast, the rear-end process of orientation, crowbar, barreling, slicing, grinding, lead-in, polishing, cleaning, and quality inspection is no exception.
According to reports, Jixing New Materials uses the improved heat exchange method of “in-situ growth and in-situ annealing†to grow crystals. This process solves the problem of the need for artificial control of seed crystals and ruthenium during the crystal growth process and the excessive temperature gradient. Unstable, small size and many other problems.
Cai Jinrong, deputy general manager of Jixing New Materials, introduced to the Gaogong LED reporter that the domestic sapphire crystal grows more than the Russian bubble method, and the technology currently produces 35 kg to 60 kg crystals. The yield is relatively low, and the scale and production capacity are limited. At the same time, the bubble method requires mature workers to operate, and the dependence on mature workers is relatively strong, while the heat exchange method is not dependent on people. Incorporating all the technologies into the control of the equipment, from this point, Jixing New Materials has gained a comparative advantage.
Cai Jinrong said that Jixing New Materials' high-quality sapphire products are positioned in the high-end LED market to provide customers with a full range of solutions. This year, for Jixing New Materials, it is mainly the market development period. It is still necessary to verify the products to customers. Therefore, this year, it will generate sales revenue of more than 100 million yuan. By next year, this sales target will be raised to more than 1 billion yuan. More than 10% of the revenue of Huantai Group.
Open source and reduce costs to reduce costs
According to Gaogong LED reporter, the price of high-purity alumina, which produces raw materials for sapphire substrates, continues to rise. At the beginning of this year, the sapphire substrate has dropped from the highest peak of 35 US dollars/piece to 25 US dollars/piece. In July, Taiwanese manufacturers 2 The inch sapphire substrate has dropped to 15 US dollars / piece, coupled with the LED backlight market growth is not as expected, the LED lighting market has not seen a big improvement, the extension manufacturers introduced mass production time is slow, sapphire substrate demand is not as expected In addition, if the domestic sapphire project releases capacity, these potential factors may reduce the gross profit margin of the sapphire substrate.
In the face of these potential but not to be overlooked risks, Wang Lubao, who has been exploring the silicon market for many years, understands that if there is no hard quality and no cost advantage, the production capacity will not be long-term.
In order to increase revenue and reduce costs, Wang Lubao said that for high-purity alumina, we will find some high-end enterprises to carry out strategic cooperation. Just like solar polysilicon raw materials, we will also carry out strategic cooperation with upstream raw material manufacturers to lock customers through strategic alliances. This way to maintain raw material costs is not too high. In addition, the locking of raw materials, one is the stability of the price, one is the stability of the quality, so that the cost will have an advantage.
For the selection of high-purity alumina, Cai Jinrong said that the purity will be higher than 5N (99.999%), and the quality of the product must be done from the source. Because we are going to produce on a large scale, through the industrialization and scale, the cost of LEDs will be reduced, and we hope that the scale effect will drive the market to start. In the next three to five years, it is estimated that the speed will accelerate, and there will be a revolution in LED lighting.
For the current domestic sapphire substrate project, Wang Lubao pointed out that who can get up early, put into production fast, who has the market, who can occupy the commanding heights, this commanding height depends on the quality of your products, see if you can reduce the cost Go on.
Cai Jinrong analysis shows that as the market matures, with the release of market capacity, each technology continues to mature, and the price of the product itself is a trend. Otherwise, the terminal market will not match the previous expansion, but if the price is still strong and the profit is not maintained, the demand in the terminal market will not be released. Just like all links in the photovoltaic industry chain should strive to reduce costs, polysilicon materials should be reduced in price, silicon wafers, batteries, components should continue to compress space, auxiliary materials, equipment, etc. should also reduce prices simultaneously, which will be conducive to the healthy development of the industry.
Targeting the civilian lighting market
Recently, South Korea's Samsung LED Co., Ltd. and Sumitomo Chemical Co., Ltd. established a joint venture company, and will invest 500 billion won ($471 million) in key components for LED production by 2015, and initially focus on LED sapphire substrates. .
Undoubtedly, sapphire substrates have become one of the most concerned segments of LED manufacturers. According to the monitoring data of the High-tech LED Industry Research Institute, as of July this year, there were 16 new sapphire projects in China.
It is understood that the Jiangsu Jixing Sapphire Project will be completed in four phases. The first phase of investment will be 1.06 billion yuan, which will form an annual output of 5 million pieces and annual sales exceeding 1.2 billion yuan. The second, third and fourth phases of the project will reach an annual production scale of 10 million pieces, 15 million pieces and 20 million pieces respectively, and all project investment plans will be completed within three years.
Regarding whether the release of capacity of the sapphire project will lead to overcapacity in the future, Cai Jinrong believes that there are so many manufacturers in China that they are going to put into production, but the real mass production still takes time. In addition, the development of the extension manufacturers also has a process, the domestic sapphire in the first half of next year. The output of the substrate is not very large, mainly due to large-scale market introduction in the second half of the year.
Even so, Wang Lubao said, “We have the confidence to target this civilian lighting market. This is a relatively large market. If the population of 1/6 of the world uses LED lights, this market will be very large. The key is speed and quality. We are very important."
"The price of LED lighting has dropped, and the civilian lighting market is likely to rise." In order to let LED lamps enter thousands of households, Jixing New Materials is also contributing its own strength.
Considering that China's LED market development is the mainstream, the next three years is also an important market in the world. Jixing new materials are mainly based on the domestic market, the domestic market will occupy 60%, and the foreign market will occupy 40%. 