An Oxford-based company recently received a significant infusion of cash and is expecting to more-than-double its workforce by the end of the year.
Relume Technologies (925 N. Lapeer Rd.), a leading manufacturer of light-emitting diode (LED) products for outdoor lighting, recently received an investment of at least $1 million ? with the potential of more to come later ? from InvestMichigan, a $300 million program capitalized by the state’s retirement system.
‘The purpose of the investment is to accelerate product development and our manufacturing capacity,? said Relume Chief Executive Officer Michael McClear. ‘We’re expecting very big things in 2010 . . . We’re expecting significant growth.?
That could translate into more jobs for Oxford area residents as Relume looks to expand its workforce, which currently consists of about 50 employees.
‘Obviously, you don’t know what’s going to happen and it’s still very early in the new year, but we’re expecting to add approximately 75 (new employees) this year and maybe as many as 100 next year, if things go according to plan,? McClear said.
McClear said most of the jobs will be production staff-related, however, there will be some mid-level and upper management openings such as managers to oversee quality, purchasing and engineering.
The investment will enable Relume to ramp up the production and marketing of its LED street light technology.
‘I would say we’re solely focused on street and area lighting, which would include parking lots, parking structures, streets and roadways,? McClear said.
The Farmington Hills-based Beringea LLC, the state’s largest venture capital firm, made the investment. Beringea manages $75 million of the $150 million Michigan Growth Capital Fund, which is half of the Exactly how InvestMichigan fund.
The Growth Capital Fund is an initiative focused on retaining and attracting growing companies to the state. ‘We’re really excited about the support we’re getting through the State of Michigan,? McClear said.
Exactly how much money Beringea put into Relume is not being released to the public.
‘Beringea has asked us specifically not to disclose what the investment amount was. But it was more than $1 million,? McClear said.
However, Relume’s CEO noted Beringea doesn’t invest in just any company.
‘They looked at nearly 500 companies over the last two years. And have only invested in less than a dozen,? McClear said. ‘It’s a huge endorsement of our business model, what we’re trying to achieve and the fact that we’re viewed as one of the premiere LED lighting companies in Michigan and throughout the U.S.?
‘We’re really proud of what we’ve been doing here and what we’re doing with Beringea,? he noted.
McClear indicated big things are on the horizon for Relume as more and more municipalities are examining the benefits of LED street lighting, which is much more energy-efficient, cost-effective, longer-lasting and environmentally-friendly than traditional lighting.
‘We have our products in evaluation in probably over 150 cities throughout North America,? he said.
In Mexico City, for example, Relume is working hard to obtain a 20,000-light order for an LED pilot program. If the company gets it and all goes well, it could lead to a larger order of more than 300,000 lights.
‘It could potentially be a huge opportunity for us,? McClear said. ‘We just delivered 10 lamps to Mexico City for evaluation.?
One of the factors helping fuel U.S. communities? interest in LED street lighting is the federal Energy Efficiency and Conservation Block Grant (EECBG) program, which is providing grants to states and local governments to fund projects that reduce energy use and fossil fuel emissions, and improve energy efficiency.
‘The most popular energy conservation measure under that program is LED street lighting,? McClear said.
As part of the American Reinvestment and Recovery Act (of 2009), Congress appropriated $3.2 billion for the EECBG program, of which Michigan was allocated $76.6 million.
This grant money is helping make the investment in LED lighting more economically feasible for communities.
McClear explained that the initial cost of converting to LED street lights is more than traditional lighting and that’s always been a ‘big hurdle? for municipalities.
‘The stimulus money is helping to break down that barrier,? he said. ‘As the faucet of the stimulus money starts to open up, we’re really starting to gear up for big things this year.?
Even Oxford has got in on the act as the township applied for $90,000 in EECBG monies to replace the village’s 78 metal halide decorative street lights along Washington and Burdick streets with LED fixtures controlled by radio frequency signals.
McClear noted it also helps that as technology continues to improve, the cost of LED street lights is dropping.
‘For example, the same light that would have cost $1,500 say 18 months ago is going to cost $600 now,? he explained. ‘The cost of LED lighting is going down dramatically.?