There are abundant oil reserves, but in recent years there is a problem of energy waste. Therefore, the Saudi government advocates energy conservation and sustainable development, and encourages public and private projects to adopt energy-saving LED systems. Faced with the huge prospects of the Saudi LED market, Philips Lighting has partnered with Saudi Arabian companies to achieve scale-up business expansion in the Saudi market.
According to Saudi media reports, GeneralLighting (GLC) is a leader in the Saudi lighting industry. On Tuesday (25th), the company announced an agreement with Philips Lighting, the global leader in the lighting industry, to establish a joint venture in Saudi Arabia.
The joint venture will provide a full range of LED lighting solutions, while at the same time consolidating GeneralLighting's original position in the Saudi market. GeneralLighting will achieve market growth with sustainable technologies in line with the Saudi government's energy efficiency goals. At the same time, with the help of Philips' LED expertise and global supply chain advantages, GeneralLighting will continue to increase its market expansion capabilities.
The joint venture will provide LED products, systems and services to the entire lighting market, as well as specializing in the production and distribution of LED lighting fixtures. It is expected that the joint venture will employ 1,300 people, which will further promote regional economic development and help Saudi Arabia achieve its vision of strengthening local manufacturing.
Driven by large-scale construction markets, government and private energy-efficient lighting projects, the Saudi lighting market is expected to grow steadily during 20142018.
Today, GeneralLighting is a leader in the Saudi lighting market with six comprehensive production projects, distribution systems and retail channels, with revenues of 1.2 billion rials in 2013.
Eric Rondolat, CEO of Philips Lighting, said: With the cooperation of GeneralLighting, Philips' business in Saudi Arabia will grow rapidly. Driven by public-private infrastructure construction, we expect local LED usage to achieve double-digit growth in 2018.
Under the investment agreement, Philips will acquire 51 shares of GeneralLighting from a joint group.