Lumileds attaches great importance to the "Belt and Road Initiative" and will build a new LED light bulb production line in China

The Chinese consortium led by GO Scale Capital’s acquisition of 80% of Lumileds, a subsidiary of Royal Philips of the Netherlands, for US$3.3 billion is expected to be completed in the third quarter of this year.

On the 28th, Klemens Brunner, global senior vice president of Lumileds and general manager of automotive lighting Asia-Pacific region, said that the participation of Chinese investors is a great development opportunity for Lumileds. China’s current “One Belt, One Road” strategy is a very good opportunity and can be used to further expand the market.

Senior industry insider Bob Lee told reporters that the transaction is a rare opportunity for the domestic LED industry. The transaction can accelerate the internationalization of the domestic LED industry and also help improve the industry's technology and manufacturing capabilities.

Some analysts say that with the development of the global LED automotive lighting market, the overall output value is expected to reach US$2.5 billion in 2018. The potential of China's automotive lighting market is also huge. Relevant data shows that as of the end of 2013, the number of motor vehicles in my country exceeded 270 million, and the number of privately owned cars exceeded 85 million, an increase of 13 times compared with 10 years ago. The growth in car ownership has led to a surge in demand for automotive lighting.

The overall pattern of competitive development between Philips and Osram has been formed in China. Although industry insiders have previously pointed out that Philips is more focused on the vehicle supporting field in automotive lighting and has not expanded much in the automotive aftermarket, Klemens Brunner revealed to reporters this time that in the next five years, the company will not only focus on China's OEM market, that is, the new car market, but also pay great attention to China's aftermarket. Klemens Brunner believes that there are now a lot of second-hand cars in China, and consumers’ demand for services is also very high.

China has proposed the "One Belt, One Road" national strategy. Klemens Brunner said that Lumileds attaches great importance to it, which can further expand the automobile market and exports. At the same time, the “Belt and Road” facilitation policy has made Lumileds trade increasingly easier, allowing more products produced in China to be exported to all over the world. "Lumileds already has two large factories in China, and is also preparing to build a new LED bulb production line. It is now being produced and exported from China to Asian countries, including Indonesia, India and Thailand."