Philips has officially opened its center for the development and production of advanced lighting technologies in Chengdu, providing it with a second regional base of operations in China.

The Philips LED Lighting Demonstration Park was opened in the Chengdu Hi-Tech Development Zone in the Sichuan provincial capital city, with the formal opening ceremony taking place on Dec 20.

Covering an area of about 40,000 square meters and with an investment of about $34 million, the park includes a manufacturing center for LED lights and a lighting application center.

The manufacturing center will mostly produce professional outdoor and indoor lights and be focused on providing local and global customers with highly customized lighting solutions.

The lighting application center covers 7,000 square meters and boasts Philips' most advanced lighting technologies and solutions.

It is modeled on “a mini smart city”, exhibiting the effects of lighting through real-life scenarios, both outdoor and indoor. It recreates urban environments such as the home, office, hotel, supermarket, clothing store, street and urban landscape.

All lighting systems in the center can be smartly controlled and managed with an advanced lighting control system, with the aim of simultaneously achieving optimal visual effects and energy efficiency.

“The park reflects our commitment to Chengdu as the second regional headquarters of Philips in China. It is also a part of the execution of our ‘home market' strategy — establishing China as one of the key innovation and operation hubs for Philips' global value creation,” said Patrick Kung, CEO of Philips Greater China, at the opening ceremony.

In June 2011, Philips signed a memorandum of understanding for strategic cooperation with the Chengdu Hi-Tech Development Zone management committee, agreeing the establishment of the company's second regional headquarters in Chengdu.

The company's aim was partly to extend its operations further into central and western China, part of a plan to implement a localization strategy in China, including the deployment of talent and the creation of marketing channels.

In 2011, when the deal was signed, Yuan Zongyong, deputy director of the Chengdu High-Tech Development Zone's management committee, praised the decision to establish an operations center in Chengdu.

“Against the backdrop of China's Go-West Strategy and global industrial restructuring, the Chengdu High-Tech Development Zone is attracting increasingly more internationally famous companies with its advantage in technology, skilled workers, its regional position, market, transportation and costs,” Yuan said.

Philips, which has its international headquarters in the Netherlands, opened its first regional headquarters in China in Hong Kong, but later moved operations to Shanghai.