Optogan And Philips Unite To Light Up LED Roads In Russia
A new joint venture between Royal Philips Electronics and Optogan is aiming to become a strong player in the fast growing LED road lighting market in Russia. The new company will be 51% owned by Philips and 49% by Optogan. Financial details of the joint venture (JV) have not been disclosed. Exchange of JV agreement between Maxim Odnoblyudov, CEO of Optogan Group (left) and Arjan de Jongste, CEO Philips Russia (right) The JV will combine Philips’ latest LED road lighting solutions and international quality standards with Optogan’s LED knowledge, innovative solutions and understanding of local market requirements. Products developed and manufactured by the JV will be sold in the Russian Federation and within its customs union with Kazakhstan and Belarus. Announcement of Joint Venture agreement between Philips and Optogan: from left to right: Christophe Charlier, Deputy CEO Onexim Group; A.B. Chubays, CEO Rusnano; Maxim Odnoblyudov, CEO Optogan Group; Arjan de Jongste, CEO Philips Russia and CIS; Peter van Berkel General manager, Philips Lighting in Russia and CIS The Philips-Optogan partnership will focus on developing a local LED industry, supporting the energy efficiency (EE) initiatives by the Russian government. The firms say switching to LED street and road lighting can reduce energy consumption by up to 80% and lead to significant savings in service and maintenance costs. The enhanced visibility of the LED lights can also contribute to more secure road safety and put people more at ease. “Today’s announcement of our joint venture with Optogan represents the beginning of a new, ambitious journey to become a key player on the Russian outdoor lighting market," says Arjan de Jongste, CEO Philips Russia and CIS. “We believe it will unlock new potential for us to bring innovative lighting solutions to Russia that save energy, reduce maintenance costs and increase road safety, thereby making a difference in people’s lives." “Optogan is one of the technology leaders in the manufacturing of light-emitting diodes (LEDs). With proven innovative, energy efficient and cost-efficient solutions in the fields of high brightness chips, LED components, LED lamps and LED luminaires. Optogan has a very deep understanding of the local Russian market," adds Maxim Odnoblyudov, CEO Optogan Group. “By joining forces with Philips we will be able to serve the Russian customers even better." Road lighting in Russia is expected to become one of the leading growth segments for LED products. The Russian road lighting market is expected to double over the next four years to €100 million by 2015.This growth is mainly driven by government energy efficiency programs for modernisation of road lighting. Analysts say this should also increase the share of LEDs in Russia to reach 50% by 2015.