PHILPS to enter Saudi Arabia joint venture to seize the LED lighting market

Saudi Arabia contains a huge amount of oil reserves, but in recent years there is a waste of energy, so the Saudi government to promote energy conservation and sustainable development of the road, to encourage public and private projects using energy-efficient LED system. The Saudi government in recent years to promote energy-saving projects, public and private buildings in the large-scale installation of LED lighting system energy saving. Earlier in the year, the royal family of Saudi Arabia lighting engineering part of the purchase of a Chinese company's new wall wash lights, PAR lights, LED head light, cast light, point Chen lights, lights, contour lights, modeling lights, etc.. Faced with the huge prospects of the Saudi LED market, Philips Lighting Company and Saudi local companies to cooperate in order to achieve large-scale business expansion in the Saudi market.

Xiao Bian from the Saudi Gazette reported in March 25th that General Lighting (GLC) is the leader of the Saudi lighting industry. On Tuesday, the company announced an agreement with Philips Lighting Company, a global leader in lighting industry, to set up a joint venture in Saudi arabia.

The joint venture will provide a full range of LED lighting solutions, while consolidating the original position of General Lighting in the Saudi market. General Lighting will be in accordance with the Saudi government's energy-saving targets to achieve sustainable development of technology market growth. At the same time, the PHILPS LED professional advantage and global supply chain advantage with the help of General, Lighting will be a tiger with wings added, to further increase its market expansion ability.

The joint venture will provide LED products, systems and services for the entire lighting market, as well as the production and distribution of specialized LED lighting fixtures. It is expected that the joint venture will employ 1300 employees, will further promote regional economic development, and help Saudi Arabia to strengthen the ideals of local manufacturing.

Saudi Arabia's lighting market is expected to grow steadily during the period of 2014 to 2018, driven by the massive construction market, government and private energy saving lighting projects.

Today, General Lighting company occupies a leading position in the Saudi lighting market, with 6 production projects, a comprehensive system of distribution and retail channels, revenues in 2013 amounted to 1 billion 200 million rials.

Philips Lighting Company CEO Eric Rondolat said: General Lighting cooperation, PHILPS's business in Saudi Arabia will achieve rapid growth. Driven by public and private infrastructure, we expect the local LED usage will achieve two digit growth in 2018. "

Pursuant to the investment agreement, PHILPS will acquire a 51% stake in General Lighting from a joint group.

The major energy consuming industry there is a serious waste of energy utilization, the residential electricity accounted for 80% of the electricity consumption in Saudi Arabia, and 70% of the electricity used for refrigeration, the main reason is that the power saving efficiency of household appliances in Saudi Arabia is low, housing insulation ability is poor; in the field of transportation, Saudi Arabia currently has more than 9 million vehicles of different types, the average annual growth rate of 4%. 5% cars, high energy consumption is one of the reasons causing the waste of energy consumption in Saudi arabia.