Osram addresses structural challenges of Luminaires&Solutions segment as part of its ongoing transformation

2013/09/30

North American service offering to be transformed to accelerate growth in solid state lighting market

As previously announced, Osram addresses structural challenges for its reporting segment Luminaires & Solutions business in line with the lighting market’s shift to semiconductor based products and solutions. In a first step the company will restructure its traditional lighting maintenance service business in North America, Sylvania Lighting Services (SLS), and focus on the growing demand for energy-efficient lighting upgrades and new value-added services. These measures will affect around 900 positions in total. “Our focus is on profitable growth and therefore we are consequently implementing the company’s transformation agenda,” said Wolfgang Dehen, CEO of OSRAM Licht AG.

The transition to LED technology is decreasing the demand for traditional lighting maintenance services while creating opportunities for the company to build on its strengths in lighting upgrade projects. The strong project base will facilitate the expansion into value-added services that provide enhanced solutions for the customers. Osram Sylvania therefore will restructure its traditional lighting maintenance service business in North America and consolidate its service center network. As a result, the company will discontinue a significant part of its locations in the U.S. and Canada within the next six months. The restructuring will impact approximately 900 positions. These changes will result in a more agile company structure consisting of both fixed and remote project hubs. The transformation will position Sylvania Lighting Services to deliver sustainable solutions for its customers in the transition to energy-efficient solutions and services.

In recent years, Osram expanded its value-added light management system business by acquiring Encelium and solution specialist Traxon. Together with the lighting services business, they expand the project business by participating in installations that further strengthen the company’s position as a solution and service provider. Osram Sylvania will continue to build on this cooperation with its existing OEM customer base and its trade and retail partners.

Given the accelerated transformation of the lighting market, Osram is pushing forward with its transformation plans. The company has initiated a comprehensive corporate program in early 2012, which in principle focuses on processes and structures, operational activities as well as the further development of the corporate culture.

ABOUT OSRAM

OSRAM of Munich, Germany is one of the two leading light manufacturers in the world. The company's portfolio covers the entire value chain from components – including lamps, opto semiconductors like light-emitting diodes (LED) – to electronic control gears as well as complete luminaires, light management systems and lighting solutions. OSRAM has around 39,000 employees worldwide and generated revenue of 5.4 billion Euros in fiscal year 2012 (ended September 30, 2012). More than 70 percent of its revenue comes from energy-efficient products. The company's business activities have been focusing on light – and hence on quality of life – for over 100 years. Additional information can be found in the internet at www.osram-group.com

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