Neo-Neon Has Been Eager to Shift Businesses From Traditional Lighting Fixtures to LED Ones

Lighting maker Neo-Neon, which has been eager to shift businesses from traditional lighting fixtures to LED ones, expects its 2012 LED lighting shipments to grow 4-5 times, according to company general manager Cheng Chien-wen. Nevertheless, the debt crisis in Europe continues to be an uncertainty for the market, Cheng indicated, adding that key battles in the LED lighting market will happen in first-quarter 2013 as some firms have decided to exit the market. The LED lighting industry was facing a downturn in 2011 with capacity utilization rates around 30-40%, said Cheng, and despite the recent demand rebound and significant increase of shipments, the low prices mean limited profits. Cheng pointed out that Neo-Neon has been running at almost full capacity in the second quarter with order visibility clear to September-October. Revenues in the third quarter are likely to show on-year growths, said Cheng. The economies in Europe and the US continue to sway markets, said Cheng. Neo-Neon first produced Christmas decoration lights and the US has been its number one market. In recent times, orders from other markets such as Japan, Russia, and China have been showing strong growth, some even surpassing demand from Europe and the US. Cheng noted that orders of Christmas decorating lights from the US have shown a decrease around 20%, signaling the US retail market in 2012 is likely to perform worse than 2011. The firm plans to introduce a 12-watt LED light bulb with 950 lumens and the retail price will be around NT$499/unit (US$16.68/unit). In Taiwan, due to the government policy to increase energy prices, demand for LED lighting has been rising, noted Cheng. Source: DIGITIMES