Chinese LED lighting giant MLS Co. Ltd. and Lighting Science Group (LSG), West Warwick, RI, are forming a joint venture to set up a new company making private-label LED lighting products for retailers. The venture will operate under the name Global Value Lighting and will be based in Rhode Island while production will come from MLS facilities and its partners in China.
The companies have worked together for two years on private-label production for Home Depot and the move to establish a separate company seeks to expand on that history, said Lawrence Lin, executive general manager of MLS.
MLS is setting up three business units: Components, Manufacturing, and Branded Business, Lin told Electrical Marketing in an e-mail exchange. “We need these business units to stand alone — especially Manufacturing and Branded Business — for information exchange reasons,” Lin said. “We believe the growth of Manufacturing will be especially strong because LSG is a company with a strong IP (intellectual property) portfolio and deep resources for the U.S. market. MLS has cooperated with them for more than two years on Home Depot business. That’s why we have a JV with them.”
Lighting Science, best known for its product lines emphasizing the connection between lighting and human health and well-being, said Global Value Lighting will capitalize on Lighting Science’s technology and intellectual property, including its nearly 400 LED lighting technology patents, and MLS’ high-volume cost structure and scale.
The new company will be staffed by Lighting Science personnel, Lin said. “The most significant potential comes from LED Lamps, Fixtures, and Health-Care Technologies. LSG has a 400-plus IP portfolio,” he said.
Global Value Lighting will combine the retail relationships, channel partnerships and strong customer base that Lighting Science has developed in North America over the past 15 years, with MLS’s best-in-class manufacturing, processes and cost-efficiencies. Under the terms of the agreement, Lighting Science will own 51% of the joint venture, with MLS owning the remaining 49%.
“The joint venture with MLS will deliver to our retail partners the best value LEDs, while still providing the same or better quality and innovative solutions as high-priced, name-brand manufacturers,” said Lighting Science Chief Executive Officer Ed Bednarcik in a Lighting Science release. “Ultimately, this will help our retail partners drive sales, margins and customer satisfaction through their private label brands.”
Lighting Science’s existing private-label product lines include the company’s patented LED filament offerings and its shatter-resistant Durabulb.
