LAKEWOOD RANCH -- Evolucia Inc. has finalized a joint venture with a company in Warsaw, Poland, to manufacture, market and sell Evolucia's proprietary energy-efficient LED lighting products throughout Europe.
The deal with Warsaw-based SETE gives the Lakewood Ranch-based company a strong foothold in Eastern European, a growing market that is clamoring for more energy efficiency.
"This is a great day for Evolucia," said Jon DiGesu, a spokesperson for Evolucia. "This helps open the European market for us and makes us a stronger company overall. It's a nice place for a company like ours to get a foothold. From a revenue and sales standpoint it opens a large lighting market.
The joint venture calls for ZETE to pay Evolucia $11 million by the end of August for the manufacture and distribution rights to the European markets. Under the joint venture agreement, a new entity called Evolucia Europe will be created, with Evolucia Inc. holding a 51 percent ownership share and SETE holding the remaining 49 percent ownership.
The joint venture agreement provides exclusive manufacturing rights to Evolucia Europe for the European markets. Production of the Evolucia LED Aimed Optics fixtures is expected to begin in 2013 at a manufacturing facility in Radom, Poland.
"This agreement signals the start of an international expansion for our company," said Mel Interiano, Evolucia chief executive officer. "This joint venture is a testament to the hard work and vision that is shared between our two organizations and the importance of delivering world class lighting solutions to our strategically focused markets around the world."
The $11 million investment is key to the company's continued growth.
"This critical $11 million investment allows us to leverage key strengths in order to build a world class global lighting organization capable of supporting what we believe will be significant revenue growth in the short term with the ability to expand over the long term," Interiano said.
Arkadiusz Pietrzykowski has been named president of Evolucia Europe and will report to Interiano.
The European Union is working to reduce energy consumption and carbon emissions by 2024. High Pressure Sodium used throughout Europe for street, roadway and parking lot lighting has been targeted for replacement. That has opened a large market for Evolucia's LED roadway lighting solutions. Poland currently accounts for 5 percent of the total market. The Evolucia LED Cobra Head fixture captured two sought after European awards winning the Best Product in the 19th International Fair of Lighting Equipment, LIGHT 2011, and the Leader of Sustainable Development during the 5th Economic Forum "Energy and Environment" in Warsaw in 2011.
SETE will subcontract manufacturing in Radom, Poland, in order to start production shortly. The company has already started reaching out to several European towns and businesses. "The manufacturing facility is already up and running and we have begun re-tooling for the European versions of the Evolucia LED lighting portfolio," Pietrzykowski, president of Evolucia Europe, said in press release.
Toni Whitt, business editor, can be reached at 941-745-7087.
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