Florida-based LightPath Technologies Inc. announced Jan/08 it entered into a joint venture agreement with CDGM Glass Co Ltd. The two firms will each own a 50% interest in the joint venture "LightPath CDGM Chengdu Optical Co. Ltd." located in Chengdu, China. The initial capital contribution of each party to the joint venture will be a cash investment equivalent to US$5M. CDGM is owned by China South Ind Group Corp, a state owned enterprise. CDGM is China's largest optical glass manufacturer producing preforms for optical companies to convert into optical lenses. The initial purpose of the JV is to develop, mold, & manufacture aspheric lenses with a diameter of less than 20mm for high volume visible imaging applications for cell phones, digital cameras & video equipment. The joint venture may also assemble modules that will include the lenses for these applications. The joint venture will sell and distribute its products in China and international markets and will provide technical and after-sale services. The target production volume of the joint venture is one million lenses per month which the parties believe can be achieved after 12 months of manufacturing operations. If LightPath and CDGM agree, the joint venture's production capacity can be expanded with additional investment of USD 5 million from each of the joint venture partners.
