Osram opts for Germany for its high-tech strategy
- Osram extends growth and innovation initiative across German sites
- Berlin set to become global center for software and autonomous driving
- The aim is to create continued growth in Germany
Osram continues its transformation by establishing state-of-the-art technology at its German sites, based on the key points set out in the ‘Zukunftskonzept OSRAM’ (“Future Concept OSRAM”) agreed to by the company and the employee representatives. The aim is to sustain the company’s growth path, which began two years ago with the launch of Osram’s ‘Diamond’ innovation and growth initiative. The transformation will also lead to changes in the employment structure in Germany. Overall, the number of jobs in Germany is set to increase over the coming years.
“The plan for Germany is one of our most important strategic decisions of recent years. By expanding the areas of autonomous driving, digitalization and LED technology, which will become increasingly significant, we are making a commitment to Germany as a high-tech location,” said Olaf Berlien, CEO of OSRAM Licht AG.
“This agreement creates reliable prospects for the German plants, and is an important step for securing and expanding workforce,” according to Irene Schulz, managing board member of trade union IG Metall.
The agreement on the key issues of the ‘Zukunftskonzept OSRAM’ is vital for the future development of the company and its German plants into a provider of cutting-edge digital lighting solutions. The focus is on the Berlin and Schwabmünchen sites. Osram experiences a large fall in volumes for its traditional business here, which was threatening the existence of the plants in the medium term.
However, Berlin has proved to be a suitable location for the future business of autonomous driving. Over the coming years, the plant is set to be transformed into a high-technology center. The Schwabmünchen site, where the company used to produce pre-material for light bulbs, among other things, will become a facility for LED pre-materials, which are produced in a cleanroom.
The Herbrechtingen site will remain the leadplant for specialty lighting worldwide. The Eichstätt plant is experiencing high capacity utilization due to the strong demand for cinema lamps and at the Regensburg site LED capacities will be significantly expanded over the next few years. A comprehensive production and future program was recently agreed upon with the workers council, to provide future viability of the Traunreut plant.
OSRAM, based in Munich, is a globally leading lighting manufacturer with a history dating back about 100 years. The product portfolio includes high-tech applications based on semiconductor technology such as infrared or laser lighting. The products are used in highly diverse applications ranging from virtual reality, autonomous driving or mobile phones to smart and connected lighting solutions in buildings and cities. In automotive lighting, the company is the global market and technology leader. Based on continuing operations (excluding Ledvance), OSRAM had around 24,600 employees worldwide at the end of fiscal 2016 (September 30) and generated revenue of almost €3.8 billion in that fiscal year. The company is listed on the stock exchanges in Frankfurt and Munich (ISIN: DE000LED4000; WKN: LED400; trading symbol: OSR). Additional information can be found at www.osram.com.
This document contains statements and information pertaining to our future business and financial performance and future developments that may constitute forward-looking statements – i.e. statements about processes that take place in the future, not in the past. These statements pertaining to the future can be identified by expressions such as "anticipate", "expect", "want", "intend", "plan", "believe", "aspire", "estimate", "will”, "predict" or words of similar meaning. Such statements are based on current expectations and certain assumptions of OSRAM's management. They are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond OSRAM's control, affect OSRAM's operations, performance, business strategy and results and could cause the actual results, performance or achievements of OSRAM to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historic trends. These factors include in particular, but are not limited to, the matters described in the chapter “Report on Risks and Opportunities” in the Annual Report of OSRAM Licht Group. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of OSRAM may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. OSRAM neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures they reference.