Wooree Lighting Holdings Co., Ltd. is joining hands with one of 3 biggest Chinese lighting manufacturers and is going to establish a huge LED lighting cooperative company. Based on this cooperation, they are going to challenge top global lighting businesses. A new growth plan is operating within Wooree Lighting Holdings Co., Ltd., which is a business with 50 years of tradition. Industries are interested whether sales for Wooree Lighting Holdings Co., Ltd. will increase with a fact that establishment of cooperative company will help Wooree Lighting Holdings Co., Ltd. to occupy Chinese lighting industry in advance.
According to an industry on the 22nd, Wooree Lighting Holdings Co., Ltd. and have decided to set up a LED lighting company in Hangzhou along with Ouijunga Oheung.
They are going to invest capital of $10.1 million (12 billion KRW) so that they can secure capabilities to produce 120 million LED lights per year in second half of this year. Chairman Zhang Lin Fu of Ouijunga Oheung is going to visit Wooree Lighting Holdings Co., Ltd.’s headquarters in Ansan and finalize a contract that has such information.
This news is receiving attention due to a fact that representative lighting manufacturer of each country are establishing a cooperative company. It is estimated that this will be the biggest size in South Korea’s lighting industry’s history. It is also heard that capability to produce 120 million LED lights per year will also be one of top capabilities in the world.
This cooperation is taking place because both manufacturers have shared a same interest of going after global lighting markets. They are planning to do so by combining South Korea’s LED technologies and China’s manufacturing abilities.
Ouijunga Oheung is a business that makes $252 million (300 billion KRW) in annual sales and has global network as it even supplies its product to Home Depot, which is the America’s top store in construction material. However it had needed responses towards LED lights as its focus was on traditional lights such as fluorescent lights and has found a breakthrough by joining hands with Wooree Lighting Holdings Co., Ltd.
It is seen that Wooree Lighting Holdings Co., Ltd. has prepared bases for global growth through this cooperation. Although it has factories in Ansan and Vietnam, their sizes do not compare to the size of cooperative company. It is expected that Wooree Lighting Holdings Co., Ltd. will secure competitive edge in price and expand its influence in global markets through mass-production and also create synergy with the group as an affiliate of Wooree Lighting Holdings Co., Ltd. has decided to supply LED packages and modules that are major parts of LED light.
Establishment of this cooperative company is especially drawing attentions due to a fact that a new driving force is operating within Wooree Lighting Group, which makes $1.93 billion (2.3 trillion KRW) in annual sales, and Wooree Lighting Holdings Co., Ltd. Chairman Yoon Cheol-ju of Wooree Lighting Group hired CEO Choi Kyu-sung, who used to work for LG Electronics, in March of last year to pioneer new businesses. CEO Choi, who used to work in planning, strategies, and marketing for new products of LG Electronics for 28 years, is an expert in new businesses. This project set up right after CEO Choi took his position and has intention of building Wooree Lighting Holdings Co., Ltd. as a global business.
“We are planning to build a cooperative company that will make about $500 million (600 billion KRW) in annual sales by 2020.” said CEO Choi.
Wooree Lighting Holdings Co., Ltd., which was established in 1966, is a business that specializes in lighting and is famous for. It is pushing for second launch of its business as it faces LED generation.
Staff Reporter Yun, Kunil | benyun@etnews.com
