According to a report by Salina Post, a local American media, Signify plans to close a factory in Salina, Kansas, in response to the current transformation trend of the lighting industry.

Reports show that this factory mainly produces traditional lighting products. As the demand for traditional lighting products continues to decline, Signify will transfer the production of traditional lighting products to its factories in Poland and India to take advantage of economies of scale and improve efficiency.

Signify revealed that the company will begin a gradual transition in the second quarter of 2021, implementing plans to close the Salina plant and transfer production.

In fact, in recent years, the traditional lighting market has gradually become saturated, and demand and profits have declined simultaneously. Therefore, many lighting manufacturers implement the strategy of closing factories and transforming and upgrading. For example, Landvance closed two manufacturing plants that produce traditional lamps, fluorescent lamps and floodlights in the United States in 2018 and 2019, and is still continuing to reorganize traditional factories to accelerate the promotion of traditional lighting. The business shifted to the LED business. In 2019, Landvance’s LED lighting business accounted for more than 68%, replacing traditional lighting sources.