August 8, 2012 – China News – Under the joint witness of senior representatives of the Jiangsu Provincial Government, OSRAM AG today held the groundbreaking ceremony for the new Wuxi plant in China. The move will further expand OSRAM's business activities in China, the world's largest single lighting market.
The back-end plant is expected to be completed and put into production in 2013. The main business is LED chip enclosure packaging, while its two (front-end) plants in Regensburg, Germany and Penang, Malaysia, continue to produce LED chips.
Wolfgang Dehen, CEO and Chairman of OSRAM, said: “China has become the world's largest lighting market with huge market potential. The new packaging plant will help Osram to better integrate into the Chinese market and maintain steady growth and further enhance Osram's global market position."
Li Xueyong, governor of Jiangsu Province, also said: "The development of the LED industry in Jiangsu Province is very rapid and has always been at the forefront of the country. Through the cooperation between the provinces and cities, it will surely usher in a new round of LED industry development climax. Over the years, Wuxi New District has become the largest semiconductor production base in the country. The presence of OSRAM will further enhance the R&D, production and service level of Wuxi LED and semiconductor lighting and other related industries. The new district will fully support the development of OSRAM in Wuxi. I wish the new plant will be completed and put into operation as soon as possible."
Figure 1. Wolfgang Dehen, CEO and Chairman of the Board of Directors of OSRAM Germany, August 8, Huang Lixin, Member of the Jiangsu Provincial Party Committee, Secretary of Wuxi Municipal Party Committee and Aldo Kamper, CEO of OSRAM Opto Semiconductors (from left to right) The finishing touch for the lion dance marks the good wishes and good expectations of both parties.
Figure 2: On August 8th, CEO of Osram Germany Co., Ltd. and Chairman of the Board of Directors Dai En and senior leaders, Wu Lishi Party Secretary Huang Lixin and Wuxi Mayor Zhu Kejiang and other leaders laid the foundation for the Wuxi LED back-end factory and witnessed Osram and Wuxi have entered a new historical moment.
Figure 3: On August 8th, Osram Germany Co., Ltd. CEO and Chairman of the Board of Directors and the top executives, Wuxi Municipal Party Committee Secretary Huang Lixin and Wuxi Mayor Zhu Kejiang and other leaders took a group photo to celebrate the new glory of Osram and Wuxi.
OSRAM signed a contract with Wuxi New District Management Committee in May this year. The construction also marks the beginning of the construction of a 100,000 square meter factory. OSRAM expects to invest hundreds of millions of euros in the next five years and will continue to maintain a comprehensive mutual assistance relationship with its Chinese partners. After full production, the number of employees in the new packaging plant will reach 1,600.
The new Wuxi plant will help OSRAM effectively address the rapidly growing Asian market and the growing demand for LED products to strengthen its position in the growing Asian region. The Penang plant, which is responsible for the production and packaging of chips, is expected to have an LED back-end capacity that will be close to the upper limit in the next few years. This is a consideration for the establishment of a new Wuxi plant. In addition to the two (front-end) plants in Regensburg and Penang, Osram will have two back-end plants in the future. Mr. Aldo Kamper, President and CEO of OSRAM Opto Semiconductors, said: “Wuxi has unique conditions, including highly skilled personnel, comprehensive infrastructure and experienced partners, creating first-class conditions for our new LED packaging plant.”
The latest research shows that the Asian region's share of the general lighting market currently accounts for about 35% of the global total, and is expected to increase to 45% by 2012. The Chinese lighting market alone has now exceeded 8 billion euros and is expected to double at least by 2020. OSRAM has more than 16,000 employees in the Asia Pacific region, and about one-fifth of Osram's revenue in fiscal 2011 came from the Asia Pacific region. Osram has more employees in the Asia Pacific region than any other region in the world, half of whom are Chinese employees. Osram has been in the Asia Pacific market for about 80 years, covering the entire value chain from R&D to sales.
About Osram
Osram OSRAM AG, headquartered in Munich, Germany, is a wholly-owned subsidiary of Siemens Siemens AG and one of the world's two largest lighting manufacturers. As of September 30, 2011, OSRAM's fiscal year total sales amounted to 5 billion euros. OSRAM is a high-tech company in the field of lighting, with more than 70% of its sales coming from energy-saving products. Osram has a global perspective. As of September 30, 2011, it has 44 production sites in 16 countries and regions, employs more than 41,000 people worldwide, and has customers in 150 countries and regions.
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