Dutch lighting company grows in east China

At the production base of a Dutch company in east China's Jiangxi Province, workers are fully immersed in light-bulb production, while automated guided vehicles move through the aisles carrying products.

"Over the past month, we sold more than 10 containers of bulbs per day, and each container was loaded with 40,000 to 600,000 bulbs," said Ji Yilan, an employee of the LED lighting production base in the city of Ruichang. The facility belongs to Signify N.V., a Dutch lighting multinational, formerly Philips Lighting N.V.

According to Ji, the finished bulb products will be sold and shipped to over 10 countries, including the United States, Poland, Japan and Malaysia.

Having been in the Chinese market for many years, Signify has always regarded China as its "second homeland," where it has established close connections with local governments, suppliers and clients, according to Eric Rondolat, CEO of Signify.

Today, Signify boasts nine manufacturing factories and a major research and development (R&D) center in China.

With an investment of 2.8 billion yuan (about 393.55 million U.S. dollars), the Ruichang base covers a plant area of 200,000 square meters and houses 213 production lines, 70 percent of which are automated. Eighty percent of the output has been exported to the international market.

In the first quarter of 2024, the output value of the base reached 300 million yuan, and once the full production capacity and standard are reached in 2025, the annual output value is expected to exceed 5 billion yuan.

According to Rondolat, it is the dedication and work efficiency of Ruichang's government that attracted the company to the city. It took just 13 months to take the base from starting construction to going into operation.

Ruichang has a considerable advantage in labor resources, land prices and infrastructure construction.

"Our base has over 3,000 employees, of which local employees account for 90 percent," said Ji, adding that Ruichang is located in the Yangtze River Economic Belt, and boasts developed supply chains and logistics, meeting the demands of the global market.

Rondolat also highlighted China's policy support. In 2023, the country renewed the Catalogue of Industries Encouraged for Foreign Investment by adding 239 items, marking a record high.

"The increase in items on the list speaks volumes about the great importance that China has attached to its development and foreign investment," Rondolat said.

According to Ji, the Ruichang base plans to build digital, intelligent factories to cut costs, improve efficiency and explore new markets.

"The plant is undergoing unmanned workshop renovation, and it is expected to save 10 million yuan in costs after completing construction at the end of this year," said Ji, adding that new products will be developed to meet the diverse needs of consumers.

"Every time I came to China, I would visit some places. I have witnessed the rapid development of the country," said Rondolat, adding that Signify will continue to expand its investment in China in terms of production capacity, R&D and talent.