Mason LED subsidiary announced Wednesday its subsidiary Rishang has formed a new LED joint venture with Changchun Railway Vehicles Facilities.

The joint venture was formed to deepen Rishang and Changchun Railway Vehicles Facilities partnership, stated the company in a press release. It will also further deploy its LED lighting business market strategy, expand its LED lighting market, and help stimulate company profit growth, while improving its profitability and overall competitiveness.

The registered capital of the new joint venture named Chuangchun-Mason was RMB 100 million (US $15.75 million). Rishang financed 72% of the registered capital or RMB 72 million, while Zhang Hai an investor from Changchun Railway Vehicles Facilities invested the remaining RMB 28 million.

The registered capital will be paid in three year instalments, and in the first phase RMB 10 million will be invested. Rishang will provide RMB 7.2 million financing, while Zhang the remaining RMB 2.8 million. Rishang and Zhang have signed the investment agreement in Shenzhen, Guangdong, China on Oct. 13, 2015.

According to the company statement, the joint venture will mainly be investing in innovative LED lighting technology, branding, and economics of scale to spur LED lighting, LED display and LED traffic signal lighting technology.