As part of a plan to get the whole group back on to a growth track, NEC is to transfer its lighting business to a Japanese investment capital fund. The whole business of NEC Lighting Ltd will move to a newly formed company that is being set up by Nippon Mirai Capital Co.
Financial details were not disclosed, but NEC will have a 5 percent stake in the new operation.
The transfer is scheduled to take place on 1 April 2019.
NEC’s lighting arm began with the mass production of fluorescent lamps in 1952, but the rapid shift in demand to LED lighting and increasing competition in the lighting market generally has led NEC to conclude that its future lies in ICT-based ‘Solutions for Society’ and the shift to a service-oriented business model.
As of March 2018, NEC Lighting had 403 employees and annual sales of ¥17,200 million.
NEC says this move plus a voluntary retirement scheme will allow the group to streamline its workforce by approximately 3,000 personnel and improve earnings by around ¥24 billion per year.
Above: One NEC project that seemed like a good idea at the time – a ceiling fixture with built-in Bluetooth-controlled audio speakers.