GE Invests $100 Million to Grow its LED Lighting Business; Forms New Strategic Alliance
The General Electric Company (GE) through its Consumer & Industrial business and the Nichia Corp. ("Nichia") announced a strategic alliance agreement to support GELcore, LLC, based in Cleveland, Ohio. GELcore, formed in 1999, was previously a joint venture between GE and the Emcore Corp. of Somerset, NJ. GE purchased Emcore's 49% interest in the joint venture for $100 million, demonstrating its ongoing commitment to invest in LED technology and the future of lighting.
This agreement combines GELcore's LED system strengths in the Transportation, Signage, Specialty Illumination, and General Illumination segments with Nichia's extensive phosphor and optoelectronics products, such as LEDs. Both companies expect to benefit significantly from each other's expertise and penetrate the high-growth LED general illumination segment.
"This agreement is a true win-win outcome for both parties and clearly demonstrates GE's commitment to solid state lighting technology. GE and Nichia's combined excellence creates a preeminent alliance that is ideally suited to support GELcore's efforts to accelerate the growth and penetration of LED-based lighting solutions in the $12 billion global lighting segment," said Michael B. Petras, Jr., Vice President, Electrical Distribution & Lighting.
Noboru Tazaki, Executive Vice President & COO of Nichia stated, "This is a historic agreement when you consider that GE, a world leader in traditional lighting technology and LED systems and Nichia, a world leader in phosphor and optoelectronics technology are joining forces to advance LED technology and accelerate the penetration of LEDs into the general lighting industry."