Elcoteq and Philips Lighting Agree on Global Cooperation

In line with its strategy of leveraging its capabilities into new product segments with growth potential, Elcoteq announced it has successfully started serving customers in selected lighting segments. Philips Lighting, a leading provider of solutions and applications for both professional and consumer markets, has chosen Elcoteq for a global growth partner of its solid-state lighting business. Under the agreement, Elcoteq will provide Philips Lighting with global manufacturing services and related sourcing and supply chain management as well as product development services.

Solid-state lighting (SSL) is type of energy-efficient lighting that uses semiconductor light-emitting diodes (LEDs), organic light-emitting diodes (OLED), or polymer light-emitting diodes (PLED) as sources of illumination. With worldwide electrical lighting using 19 percent of all electricity, the use of energy-efficient lighting will significantly reduce energy consumption around the world and thereby cut harmful CO2 emissions.

"We are very pleased to expand our partnership with Philips and to commence the cooperation with Philips Lighting. This deal marks our entrance into a new fast growing market segment--solid-state lighting--that fits into our capabilities and our manufacturing network extremely well. We are looking forward to building a global cooperation with Philips also in this new market segment," says Vesa Keränen, President of Elcoteq's Consumer Electronics Business Unit.

Elcoteq has already started the production of SSL products in its factory in Dongguan, China. Production will expand to other Elcoteq locations including Mexico and Hungary still during the year 2010.

According to Elcoteq, the lighting business will be undergoing significant transition when new LED-based lighting products replace conventional light sources. These new lighting product applications provide significant growth opportunities for EMS companies. The value of LED-based lighting products is estimated to reach 80 billion euros by the year 2020. Elcoteq said these trends create a solid basis for developing its consumer electronics business toward serving a wider and more balanced business and customer portfolio.

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