Philips Lighting Manufacturing (Shenzhen) Co., Ltd. recently discontinued production and caused various speculations. On June 3, the reporter was informed by investigation that the root cause was the adjustment of the Philips lighting business structure and the shutdown of the traditional lighting business. At present, the main LED lighting business may gradually shift to OEM production. On the afternoon of the 3rd, Philips Lighting also sent an official statement to the reporter. In response to the demand for smart lighting development in the home lighting market and enhancing the competitiveness of the industry, Philips Lighting decided to close Philips Home Lighting Manufacturing (Shenzhen) Co., Ltd. in Shenzhen. Event: Philips closes Shenzhen factory Recently, a photocopy of the announcement of Philips Lighting Manufacturing (Shenzhen) Co., Ltd. on the decision to disband in advance was circulated online. According to the announcement, Philips Lighting Manufacturing (Shenzhen) Co., Ltd. officially ceased operations on May 31 and no longer produced any production. Philips Lighting Manufacturing (Shenzhen) Co., Ltd. explained to all employees in this announcement that the company has experienced many difficulties such as continued economic downturn, rising costs and deteriorating business in recent years. Although the company has taken various measures, it will still be able to Turning the situation down, the company’s shareholders’ meeting and the board of directors had to decide to dissolve the company ahead of time. In the announcement, Philips Lighting Manufacturing (Shenzhen) Co., Ltd. also said that thanks to the employees who have been working hard for many years, the company has developed from a three-to-one factory. The management of the company will resettle all employees according to law, including the payment of the remuneration compensation according to law, the specific treatment standard and the resignation procedure processing time. When the news came out, it caused all kinds of conjectures. Some people say that after the Huawei mobile phone factory moved from Shenzhen to Songshan Lake in Dongguan, another large company closed its factory in Shenzhen because the cost of manufacturing in Shenzhen is rising. Others said that the competition in the LED lighting industry has intensified and prices have fallen. Philips has closed the loss-making factory in Shenzhen, and the cut-off is to take into account the performance of listed companies. Expert Analysis: Business Structure Adjustments However, these may not be the underlying reasons. Zhang Hongbiao, director of the high-yield research and development financial services project in the LED lighting industry for many years, told reporters that in the future, global lighting giants such as Philips and Osram will basically not produce themselves. This is the strategic direction they have set a year or two ago. Zhang Hongbiao said that in the future LED packaging and lighting terminal products, Philips will adopt the method of outsourcing production, and only the LED chips will do it themselves. In other words, the production of subcontracting OEM, they are only responsible for brand, quality control, design, channels. Therefore, it is normal for Philips Lighting to close a factory. This is also related to the adjustment of the business structure of Philips Lighting. Zhang Hongbiao said that with the accelerated popularization of LED lighting, Philips will gradually turn off the traditional lighting business. Judging from the acquisition time, the original business of the Philips Lighting Shenzhen factory is based on traditional lighting. According to public information, the predecessor of the Philips Lighting Shenzhen factory was the Weimar Shi Lighting Co., Ltd., which was founded in 1994 and was founded by a joint venture between Belgium's Massive and Hong Kong Yuwei Group. In 2008, Philips acquired a 52% stake in Weimar Shi Lighting Co., Ltd. and in October 2009 registered Philips Lighting Manufacturing (Shenzhen) Co., Ltd. At the end of 2010, Philips completed the acquisition of the remaining 48% of the company's shares, achieving 100% shareholding. Dou Linping, secretary-general of the China Lighting Society, also told reporters that this is the adjustment of the business structure of Philips Lighting. The Shenzhen factory of Philips Lighting is mainly engaged in the traditional lighting business. It is normal to eliminate the traditional lighting business. Philips Lighting still has a strong R&D base in Shanghai. Association: A number of LED companies produce external migration Zhang Yaping, deputy director of the member service department of Shenzhen LED Industry Association, told reporters that Shenzhen's labor and land costs are rising, and it is normal for Philips to turn off the business that does not make money. Zhang Yaping said that the LED lighting industry has passed the high-speed growth period, returned to rational growth, and entered a stable development cycle. The elimination has been eliminated, and innovative enterprises can continue to survive. She also said that many LED lighting listed companies in Shenzhen and Guangzhou have shifted production to the mainland and at lower cost due to cost considerations. For example, Hongli Optoelectronics transferred the LED packaging business to Jiangxi; Lehman shares the factory to Huizhou; Wanrun Technology also moved the factory from Shenzhen to Songshan Lake in Dongguan. Philips is one of the leading companies in the global lighting industry and will definitely turn to high value-added products and links, Zhang Yaping said. Philips: Focus on smart interconnection In the face of various speculations, Philips Lighting finally made a sound. In an official statement sent to reporters on June 3, Philips Lighting said: In response to the demand for smart home development in the home lighting market and to enhance industry competitiveness, Philips Lighting decided to close Philips Home Lighting Manufacturing (Shenzhen) Limited in Shenzhen. the company. Philips Lighting is grateful to all employees for their contributions to the company's development. Philips Lighting will fully protect the rights and interests of employees involved in this closure in accordance with relevant state regulations. Philips Lighting has been in China for nearly a hundred years, constantly introducing products and solutions that meet the needs of the Chinese market and consumers, and improving people's quality of life through meaningful innovation. From the establishment of the first joint venture in China in 1985 to the second largest R&D center in the world, Philips Lighting will continue to abide by its commitment to the Chinese market. In fact, Philips Lighting, which was spun off from Philips, was just listed on the Amsterdam Stock Exchange in Europe and the Netherlands on May 27 this year. It is said that the market value has reached 3 billion euros. The reporter learned from relevant sources that Philips Lighting will focus on the development of smart interconnection business in the future. The closure of the Shenzhen factory is due to business adjustment considerations. Since Philips Lighting has multiple production bases in China, it will continue to provide products and services in the future, and Philips Lighting will not completely abandon production. On the afternoon of the 3rd, Philips Lighting also announced that the company's leadership team will meet with the energy ministers of the countries participating in the 7th World Clean Energy Ministerial Meeting on June 2, US time. Philips Lighting will make a commitment at the conference to sell more than 2 billion LED bulbs by 2020. The energy and pollution reduction achieved by this goal is expected to be equivalent to the total electricity generated by about 60 medium-sized thermal power plants by 2020 and the total emissions generated by 24 million vehicles. At the same time, Philips Lighting will reaffirm its commitment to achieve global carbon neutrality by 2020. As an important step, it is hoped that by the end of 2016, it will realize the full adoption of renewable energy in its operations in the United States.

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