Plessey wins GBP30 million backing from Deutsche Bank for major LED manufacturing expansion
The £60 million ($100 million) expansion will provide the base for new solid state lighting technologies and products, increasing the Company's production capabilities by a factor of 30, more than tripling its workforce to about 535 employees and positioning Plessey to capture a significant share of the multi-billion dollar, and growing, solid state lighting market.
Plessey's award-winning, MaGIC™ GaN-on-Silicon technology has the ability to cut the cost of LED lighting by using standard silicon manufacturing techniques instead of more traditional, expensive, sapphire-based manufacturing.
According to a new market research report*, the solid state lighting market size is projected to reach $22.2 billion by 2020, growing at a compounded annual growth rate of 7.31% from 2015 to 2020. The market will be driven by high brightness LEDs delivering higher energy efficiency in all lighting applications, with solid state lighting forming a significant part of global efforts to reduce energy consumption and greenhouse gas emissions.
Iain Silvester, Plessey's CFO, said: "Deutsche Bank is providing us with a senior secured term loan facility that meets our financial needs for the next three to five years. The bank has come up with a progressive flexible facility that supports our expansion plans for our manufacturing capacity here in Plymouth. Plessey will increase its manufacturing capacity from over 100 million square millimetres of Gallium Nitride material per year to more than 3 billion square millimetres. The facility modifications, which are also supported by £6.7 million from the Regional Growth Fund, will take place during 2015, with additional manufacturing tools and facilities coming on stream through the end of this year through to 2017. During this time we expect about 400 new jobs to be created."
Michael LeGoff, Plessey's Chief Executive Officer added: "We are entering a very exciting period for the company with our new technology and products now gaining traction in one of the fastest growing technology markets, solid state lighting. The expansion is highly significant for the Company but also for British high-tech manufacturing. It aligns well with national strategies, such as the Growth Review, that support manufacturing and make the UK a global leading exporter of high value goods."
Note to Editors:
Source: *"Solid State Lighting & Fluorescent Lighting Market by Technology - Forecast to 2020", published by MarketsandMarkets.
Plessey is a leading expert in the manufacture of semiconductor products used in sensing, measurement and controls applications, and is now at the forefront of the Solid State Lighting revolution. Its MaGIC™ (Manufactured on GaN-on-Si I/C) LED technology has won numerous awards for its innovation and ability to cut the cost of LED lighting by using standard silicon manufacturing techniques.By using its understanding of electronics and expertise in micro-electronic product design and manufacture, Plessey is radically enhancing the human experience with micro-electronics solutions such that people achieve more than they thought possible.
About Deutsche Bank AG
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany's leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
MaGIC is a trademark of Plessey Semiconductors Ltd.