B&R Initiative brightens prospects for Leyard's LEDs worldwide

If light is the way to dispel darkness, then a Beijing-based, 1995-founded company is showing the world there is an environmentally friendly, relatively cheaper and energy-efficient way of doing that and, in the process, growing a global-scale business.

You could call it the Leyard way.

The global footprint of Leyard Optoelectronic Co Ltd, China's largest light emitting diode, or LED, display manufacturer, already spans industry segments such as digital displays, video walls, visualization products, urban landscape lighting, cultural and technological innovation, and virtual reality.

It is a global leader in the design, production and sales of digital displays, video walls and visualization products around the world.

For instance, its LED display products, which are used in various fields such as broadcast, sports arenas, stadiums, advertisement networks, retail digital signage, control rooms and exhibitions, took up 14 percent in the global market last year, earning the top rank.

Before that, Leyard made a name for itself through sound and light engineering of the opening ceremony of the 2008 Beijing Olympics, displays at the National Day military parade in 2009, network screens for the APEC conference in 2014 and the nightscape lighting project for the G20 summit in Hangzhou in 2016.

Besides, it implemented nightscape improvement projects in several cities.

Over the years, such wide application of LEDs through various technologies in China and the rest of the world has helped cut use of conventional forms of lighting, which not only use harmful materials but are expensive and energy-guzzling.

So, governments across the globe are implementing LED lighting in many public settings. Globally, the LED market is expected to see compound annual growth rate of 13.5 percent so as to reach sales of $42.7 billion by 2020, according to Allied Market Research.

Leyard believes it is well placed to exploit the coming growth opportunities. Sales revenue this year is expected to exceed 9 billion yuan ($1.4 billion), generating a profit of 1.2 billion yuan and market value of about 30 billion yuan. Leyard's R&D spend is 7 percent of sales.

Leyard has more than 40 domestic and foreign units with 3,500 employees in all, including 600 from aboard. Having production bases in the United States, Slovakia and France means that about 41 percent of Leyard's revenue now comes from overseas markets.

Its management said the company will continue to expand its presence in the countries and regions involved in the Belt and Road Initiative, particularly in Central Europe and Eastern Europe. "We plan to hire more agents in the economies related to the Belt and Road Initiative," said Jia Zhe, chief marketing officer of Leyard.

Construction of its factory and showroom in Slovakia started in 2015, covering an area of about 5,000 square meters. The first production line started operations in mid-June, and will seek to meet the growing demand for digital displays and video walls from European customers, especially those who prefer to buy digital display solutions built in the European Union.

Europe is a critical market for an expanding Leyard, said Robert Stewart, executive director of the company's European arm.

The Slovakia unit will bring Leyard closer to European, Russian, Middle Eastern and African customers while enabling it to extend high-quality manufacturing into a key region of the world.

"Slovakia is a member of the European Union. So, the Slovakia factory will help Leyard access and support the European market as its products would meet the European and US standards," said Jia.

The US, Brazil and Europe are all important overseas markets, said Jiang Yi, COO of Leyard. In 2015, Leyard acquired a US-based high-end display panel maker called Planar Systems for $156.8 million, which augmented its product range and enabled it to expand outside China.

But the Asia-Pacific region still dominates the LED technology market because it houses about three quarters of global electronics manufacturers.

Leyard sees a role for itself in the larger corporate-scape out-side the LED segment. "We'll provide our technology, services and management expertise to promote other Chinese enterprises' 'go-global' plans," said Jia.

Chinese enterprises will encounter challenges when expanding overseas, he said. "Any changes in local policies, laws and regulations on, say, overseas investment, or mergers and acquisitions, would increase uncertainty."

Because local employees understand local policies better, trust and the right corporate culture are essential to reduce operational risks. "The core of Leyard's culture is about sharing. We hope to share the benefits of economic development with all the countries and regions concerned," said Jia.

Li Jiayue contributed to the story