LEDVANCE Has Invested 200 Million Roubles to Support Export Potential of Its Plant in Smolensk

LEDVACE JSC has completed implementation of an investment project related to refurbishing a glass melting furnace at the production plant in Smolensk. The total implementation period starting from the project preparation and finishing with the furnace mounting and process adjustment, reached 12 months. The total investments into the project exceeded 200 million roubles.

The light bulb manufacturing plant in Smolensk is the only facility in Russia to produce conventional light sources. At present the plant produces nearly 75 million fluorescent bulbs.

It should be recalled that in December 2018 the Commission on Investment Policy attached to the Administration of the Smolensk Region and chaired by Governor of the Smolensk Region Alexey Ostrovsky, approved an investment project by LEDVANCE JSC related to refurbishing a glass melting furnace; as a result, starting from January 1, 2019 the enterprise has been granted state support provided in the form of a corporate property tax exemption.

Modernization of equipment ensured reduction of production costs, extension of a product range, growth of the sales market and increase of the output for the goods to be exported.

58% of the glass tubes (which are considered to be semi-finished goods in production cycle) currently manufactured with the renovated furnace, are exported to Italy. 36% of goods are distributed in Russia. After the furnace refurbishing process was completed, LEDVANCE signed a supply agreement for shipping the glass tubes to the Ukraine and Slovakia.

45% of the finished goods manufactured by the Smolensk enterprise are exported to Germany, while 18% are delivered to the UAE. Besides, other destinations include Argentina (3%), Bulgaria (1%), Brazil (3%), Republic of Belarus (4%), Czech Republic (1%), France (5%), Croatia (2%), Kazakhstan (4%), Mexico (3%), Ukraine (6%), Republic of South Africa (5%). These countries as well as several others are consuming fluorescent bulbs, incandescent lamps, gas discharge lamps and starters.

For Reference

LEDVANCE has appeared in Russia based on Svet OJSC in Smolensk. In 2018 the company management decided to shutdown LEDVANCE plants in Augsburg and Berlin (Germany) due to their low profitability. As a result, the plant in Smolensk has become the only enterprise in Europe producing traditional light sources. At present the annual output of the plant consists of nearly 75 million fluorescent bulbs, 247 thousand outdoor sodium lamps, 14 million incandescent lamps, as well as supplementary equipment, including a wide range of goods, from starters to luminaires. Approximately 400 employees are currently working for Ledvance JSC in Smolensk, while the average staff employed is 560 people. The products made by the plant are exported to more than 30 countries worldwide.

LEDVANCE is a global producer of innovative light sources and smart lighting solutions for professional use, as well as for end users. The company is active in more than 140 countries worldwide. In March 2017 LEDVANCE was sold by OSRAM to a Chinese consortium, consisting of the Chinese investor IDG Capital Partners (IDG), the Chinese light source manufacturer MLS Co., Ltd. (MLS) and the financial investor Yiwu State-Owned Assets Operation Center (Yiwu). Since April 2018, the Chinese LED lighting company MLS is the sole owner of LEDVANCE.