One billion euros to invest in high-end lighting PHILPS Road

A plan to occupy office lighting heights is being launched by PHILPS lighting group.

By 2012, PHILPS lighting group will invest 1 billion euros in the field of energy saving products development and through a series of strategic long-term cooperation and mergers and acquisitions to complete the layout of the LED lighting.

This program is the background of PHILPS is increasingly influenced by the global economic downturn, shortly before the release of PHILPS's third quarter earnings to produce a lower than market expectations of the "answer": total sales declined 6 billion 470 million from the same period last year to 6 billion 330 million euros, if not due to the sale of TSMC shares get 302 million euros in revenue PHILPS, the results may be worse.

The ability of domestic trouble and foreign invasion, the "elephant" is trying to show the "resourceful", the large and diversified whole to focus on "health care, lighting, quality of life in three areas. In China, PHILPS will take a more focused strategy, the focus of the business to invest in higher profitability office lighting high-end market.

Slimming

For Chinese consumers, PHILPS can be described as a typical representative of large business diversification. But PHILPS is changing the image of PHILPS in recent years, the implementation of a series of mergers and acquisitions and divestitures, will be locked in its business more profitable "health care, lighting, quality of life in three areas.

PHILPS in 1920 to enter the market in Chinese China do "subtraction", as early as 2002, PHILPS has sold communications, security and business image and health products in the company; the first half of 2003, and by more chip production contracts to Asian manufacturers and has closed two chip factories, gradually the contraction of chip production business; by the end of 2004, PHILPS will sell notebook display and flat screen TV business to AOC company; in October 2006, PHILPS will be its mobile phone business to produce electronic information industry group China. In August this year, PHILPS released the announcement shows that the company has sold all the shares held by the hands of TSMC, completed ahead of schedule to withdraw from the semiconductor field.

Karma contraction brought PHILPS stronger profitability, but its sales also appeared simultaneously fell steadily, the first quarter of this year reported a total sales growth to 5 billion 965 million euros in the company, but reduce the television business sales was offset by healthcare and lighting business growth; the three quarter earnings also fell 2%, affected by the global the economic downturn.

Chief executive of PHILPS, said, the current economic situation is very uncertain, the company plans to take a series of measures to reduce costs and ensure profits "to complete the downsizing, including restructuring of the company to reduce management costs, increase investment in the region is growing rapidly in emerging markets and the economy.

focusing

In the large-scale "downsizing" at the same time, PHILPS in Chinese adopted "maintain pressure" policy, in giving up some business at the same time, in the health field of medical lighting, launched a series of mergers and acquisitions, to further strengthen its scale advantage.

Since 2005, PHILPS in the lighting, medical and other fields, the total amount of mergers and acquisitions has more than 10 billion euros. As for has established 23 joint or wholly owned company China market, is the first PHILPS market share in the field of lighting is also to the field of lighting a new attack, the profitability of this time it chooses the field of lighting the strongest, the highest content of office lighting technology.

But this plan can once again create the glory of PHILPS's high-end market is still unknown, in the state of shrinking demand, China's domestic lighting market is in recession. "The development of the enterprise is not as fast as in the past few months," said Wang Jinsui, chairman of the China Illuminating Engineering society. Clearly, PHILPS is firmly advancing the plan. In order to cover the Chinese market, to ensure that the production capacity of PHILPS lighting is particularly important, and now, PHILPS is in China launched a series of construction and acquisition of lighting plant strategy. In Jiangsu Yizheng, an area of over 100 acres of fluorescent lamp production plant is stepping up its commissioning in January 2009 will be put into production after the completion, it will be one of the world's largest production base of the fluorescent lamp, and it is the owner of PHILPS, it will produce T5 and TLD80 three color direct fluorescent lamp energy-saving light source, PHILPS is expected in the next 3 years, PHILPS (China) straight tube fluorescent lamp production base production will increase by more than 60%; in Zhejiang, Dongyang, PHILPS and Hengdian tospo joint venture Dongyang tospo Lighting Co. Ltd. has established this year, the new joint venture will launch a full range of compact fluorescent lamps (CFLs). In November 9th, PHILPS announced that once again, is to establish a new energy-saving lamp production factory and discuss Chongqing Beibei District, southwest of Chinese to cover the market, PHILPS also announced that it will fully enter the channel sink, two or three line city plan.

"PHILPS in the past two or three years of lighting investment is huge, more than any previous PHILPS lighting for investment", after Bailing said, PHILPS's 2010 vision clearly wants to have at least 6 percentage of the entire PHILPS group business annual growth, at least in China business growth of more than 20%, at the same time also hope that the annual profit growth of 1-2 percentage points. "At the end of the domestic market is not sophisticated lighting system, PHILPS may still be copied its high-end electrical route that year," Analysys International, an analyst believes,