Vu1 Corporation Transitions Manufacturing to Huayi Lighting Company
Announces closure of Sendio manufacturing operation in Czech Republic
Transition to save Vu1 over $4 million in fixed costs annually, significantly increase cash flows and reduce burn rate
NEW YORK--(BUSINESS WIRE)--
Vu1 Corporation (OTCBB: VUOCD.OB - News) (“the Company”), a developer and manufacturer of proprietary mercury-free, energy-efficient general illumination lighting products, announced today it has transitioned its manufacturing operations to the Huayi Lighting Company Ltd. (“Huayi”), closing its manufacturing operation at the Sendio facility in the Czech Republic.
“As part of a previously-announced review of our existing manufacturing facilities, the Board determined that it is in the best interest of Vu1 and its shareholders to transition manufacturing to the Huayi Lighting Company; the wind-down of the Sendio facility was completed on February 13, 2012. By shifting manufacturing to Huayi Lighting, we can achieve both our near- and long-term business objectives in a cost-effective manner,” stated William B. Smith, Chairman of Vu1 Corporation. “This strategic transition positions us to effectively execute our global growth strategy, propels us towards profitability and further increases shareholder value and eventual monetization of the Company.”
Huayi Lighting will manufacture Vu1 Corporation’s lighting products, including R30, A19 and R40 bulbs for Lowe’s, Avspar International, Seattle Lighting and other pending retail and distribution outlets. The changeover from the Sendio facility to Huayi Lighting will save Vu1 Corporation over $4 million in fixed costs annually while further increasing the Company’s cash flows.
Located in China’s “lighting capital” GuZhen, ZhongShan City, Huayi Lighting is an experienced lighting products manufacturer with approximately 5,000 employees throughout its 30 manufacturing facilities with 2.15 million square feet of manufacturing capacity. Notable customers include Beijing National Stadium (“Birds Nest”), Four Season Hotels and Resorts and the National Museum of China.
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