Elcoteq and Philips Lighting Agree on Global Cooperation - Elcoteq Expands its Business into a New Fast Growing Market Segment
In line with its strategy of leveraging its capabilities into new product segments with growth potential, Elcoteq has successfully started serving customers in selected lighting segments. Philips Lighting, a leading provider of solutions and applications for both professional and consumer markets, has chosen Elcoteq for a global growth partner of its Solid-State Lighting business. Under the agreement, Elcoteq will provide Philips Lighting with global manufacturing services and related sourcing and supply chain management as well as product development services.
Solid-State Lighting (SSL) is type of energy-efficient lighting that uses semiconductor light-emitting diodes (LEDs), organic light-emitting diodes (OLED), or polymer light-emitting diodes (PLED) as sources of illumination. With worldwide electrical lighting using 19 per cent of all electricity, the use of energy-efficient lighting will significantly reduce energy consumption around the world and thereby cut harmful CO2 emissions.
“We are very pleased to expand our partnership with Philips and to commence the cooperation with Philips Lighting. This deal marks our entrance into a new fast growing market segment - Solid-State Lighting - that fits into our capabilities and our manufacturing network extremely well. We are looking forward to building a global cooperation with Philips also in this new market segment”, says Vesa Keränen, President of Elcoteq’s Consumer Electronics Business Unit.
Elcoteq has already started the production of SSL products in its factory in Dongguan, China. Production will expand to other Elcoteq locations including Mexico and Hungary still during the year 2010.
The lighting business will be undergoing significant transition when new LED-based lighting products replace conventional light sources. These new lighting product applications provide significant growth opportunities for EMS companies. The value of LED-based lighting products is estimated to reach 80 billion euros by the year 2020. These trends create a solid basis for developing Elcoteq’s Consumer Electronics business toward serving a wider and more balanced business and customer portfolio.
Elcoteq SE is the global Life Cycle Service Partner for high-tech product and service companies.
Engineering, Manufacturing, Fulfillment and After Market Services are the cornerstones of Elcoteq’s extensive service offering. Elcoteq has a proven track record in electronics manufacturing services (EMS) and a global factory network coupled with modern manufacturing equipment and consistent systems and processes.
Products include Consumer Electronics devices such as mobile phones and their accessories, set-top boxes, flat panel TVs as well as System Solutions products such as infrastructure systems, modules and other industrial segment products.
The Group’s consolidated net sales for 2008 totaled 3.4 billion euros and it employs approximately 11,000 persons. Elcoteq SE is listed on the Nasdaq OMX Helsinki Ltd. For more information visit the Elcoteq website at www.elcoteq.com.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”.
Headquartered in the Netherlands, Philips employs more than 116,000 employees in more than 60 countries worldwide. With sales of EUR 23 billion in 2009, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.
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