Royal Philips (NYSE: PHG, AEX: PHIA) and China Electronics Corporation (CEC) today announced the signing of a joint venture agreement to become a leading player in the intelligent road lighting market in China. After the necessary regulatory approvals have been obtained, the new company will be 70% owned by SED, part of the CEC group of companies, and 30% by Philips.
The joint venture will focus on intelligent controls, software and LED fixtures for road lighting. The cooperation combines Philips’ strong innovation capabilities in road lighting with SED’s knowledge of local market requirements. The Chinese government is promoting the development of more energy-efficient cities, including the upgrade to LED technology and intelligent lighting management systems.
“The agreement between SED, one of the Chinese pioneers in the LED industry, and Philips, a worldwide leader in innovative lighting solutions, is a milestone for both parties to accelerate growth in the area of intelligent lighting for cities in China,” said Liu Liehong, President of CEC. “The joint venture combines the strengths of the two companies, allowing us to shape the LED transformation to energy-efficient and intelligent public lighting in China.”
“Philips is responding to the call of the Chinese government to develop more environmentally-friendly and intelligent cities with our LED lighting solutions,” said Patrick Kung, CEO of Philips Greater China. “The partnership with SED will allow Philips to serve local customers even better with meaningful innovations and further build on our success in China.”
The joint venture’s offering will include Philips CityTouch, an innovative web-based intelligent management system for street and road lighting in a city. It enables online, dynamic and flexible control of lighting on a city-wide scale, allowing cities to use light only when and where it is needed, maximising efficiency while ensuring visibility and road safety. Combined with LED lighting, it delivers energy and maintenance savings of up to 70%.