China Rare Earth Holdings Ltd. will set up a joint venture in China with Siemen's OSRAM to produce and sell phosphor products for the lighting industry, China Daily reported Tuesday.

The joint venture involving an investment of 43.5 million euros (about 64.8 million U.S. dollars) will be 49.9 percent owned by Silver Mile Holdings Limited, an indirect wholly-owned subsidiary of China Rare Earth, and 50.1 percent by OSRAM, China Rare Earth said in a statement.

The joint venture will have an annual production capacity of up to 2,000 tonnes of tri-band phosphor when it is in full operation, with the products to be sold in China and the international market.

The investment of approximately 83.2 million Hong Kong dollars (about 10.7 million U.S. dollars) will be funded by internal resources and bank financing, China Rare Earth said in the statement.