Osram to open new plant in China

Osram has laid the foundations of a new plant in Wuxi, China, where LED products will be assembled.

The plant is expected to start production in 2013 and has attracted more than £79 million in investment so far. The production of LED chips will continue in the company’s plants in Germany and Malaysia, while the packaging of chips into housing will be done at the new facility.

‘China is already today the biggest sales market with significant future potential. The new assembly plant enables us to better participate in the strong market growth in China and further extend our solid position in Asia,’ said Wolfgang Dehen, CEO of Osram.

The new Wuxi plant in East China’s Jiangsu province covers about 100,000 sq m and is expected to have a headcount of around 1,600.

The province’s governor, Xueyong Li, said: ‘Growing at a remarkable rate, Jiangsu province’s LED industry is at the forefront in China. We will fully support Osram’s development in Wuxi with the highest-quality service, and we also hope Osram can expand its investment in Wuxi to have the plant up and running as soon as possible.’

The Asian region already accounts for around 35 per cent of today’s global general lighting market, which is expected to increase to 45 per cent by 2020, according to recent studies. Osram generated about one fifth of its revenue in 2011 from the Asia Pacific region, where it employs over 16,000 people.

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