Osram to close manufacturing site in Indonesia

In Tangerang, Osram manufactures traditional products, mainly incandescent lamps, with some 1'100 employees. The move is part of the company’s reorganization program initiated in 2012 and targets cumulative gross savings of about EUR 1 billion by 2015. By contrast, demand for semiconductor-based lighting sources, especially for light-emitting diodes (LED), is rising. Osram estimates that LED penetration of the lighting market will accelerate in the coming years. In 2011 it accounted for 9 percent of the general lighting market, by far the biggest lighting segment globally. This share is expected to increase to nearly 70 percent by 2020 according to a study by McKinsey. Osram is building up capacities in this future-oriented business area. This includes an investment over 100 million euros in a new LED assembly plant in the Chinese city of Wuxi. Osram views Asia as the most important key market of the future, especially with regard to the expected LED development in the region.