LEDVANCE announces that it will close a factory in the US
In recent years, the traditional lighting market is fiercely competitive, and the lighting market is gradually moving towards LED lighting, bringing a new wave of replacement. At the same time, the awareness of energy conservation around the world has increased, accelerating the elimination process of traditional lighting products, and the penetration rate of LED lighting market has been continuously improved. More and more companies are beginning to shrink their traditional lighting business or exit the market directly.
On April 23, LEDVANCE announced the closure of the St. Mary’s, Pennsylvania plant in Pennsylvania, USA. As a result, the Juarez, Mexico facility, which supplies St. Mary’s, will also stop production. About 175 employees at St. Mary’s and about 125 employees in Juarez will be affected.
It is reported that in recent years, as consumers turn to long-life and energy-saving LED bulbs, the demand for traditional bulbs produced at St. Mary’s plant is gradually declining. At the same time, LED bulb prices continue to decline, life expectancy increases, and the need to replace bulbs decreases. Therefore, from the perspective of economic feasibility, LEDVANCE believes that there is no need to continue to operate St. Mary’s factory.
The report pointed out that St. Mary’s factory will completely stop production by the end of October 2019, and the factory will completely withdraw from the market by the summer of 2020.
LEDVANCE is proud of the contribution that St. Mary’s factory and its employees have made to the lighting industry and corporate customers over the years. LEDVANCE said that the company will soon begin to relocate employees affected by the closed factory.
Reports at the end of last year showed that LED lighting has gradually become a trend in the global lighting market, resulting in reduced demand for LEDVANCE fluorescent tubes, traditional BR30 bulbs and traditional PAR38 floodlights produced at the Versailles manufacturing facility in Kentucky, USA. As a result, LEDVANCE announced the closure of its manufacturing facility in Versailles, Kentucky.