MUNICH & REGENSBURG, Germany--(BUSINESS WIRE)--The Osram Continental GmbH joint venture has successfully completed negotiations and the issuance of merger control approvals. The new company is actively doing business with a focus on intelligent lighting solutions in the automotive market, effective July 2, 2018.
Osram Continental, with headquarters in Munich, Germany, will initially employ approximately 1,500 people across 16 locations worldwide. The company plans to move the headquarters to Garching, Germany, within the next year. The joint venture aims to generate annual sales in the mid-triple-digit-million-euro range. Continental and Osram each hold a 50 percent stake in the joint venture, which is fully consolidated through Osram.
Osram Continental is planning for growth rates of up to double digits annually for the next five years. This is based on strong growth in the market for LEDs, as well as laser-based lighting modules and solutions, and associated electronics. The initial products from the joint venture are expected to be ready for series production by 2021.
Dirk Linzmeier, CEO of Osram Continental, has high expectations for the start of the joint venture. “Over the past few months, we have laid down a number of milestones, allowing us to create a new company that will revolutionize the future of automotive lighting. Building on these fundamentals, Osram Continental will provide a significant boost to the market.”
“By launching our joint venture, we are generating confidence that the market for intelligent automotive lighting will continue to grow and be viable. Furthermore, with our team of experts from both companies, we will increase the efficiency, innovation and integration of our products. I am looking forward to collaborating with our new colleagues to develop exciting, game-changing products,” said Harald Renner, CFO and member of the general management of Osram Continental GmbH.
The market for vehicle lighting in the automotive industry is currently in a period of transition as it moves toward semiconductor-based lighting technologies. As a result, software and electronics are becoming increasingly influential. Through this partnership, Continental and Osram are combining their strengths to develop state-of-the-art headlamp modules and solutions for tail and interior lighting for both automotive manufacturers and suppliers.
Joint venture takes intelligent automotive lighting to a new level
The joint venture will utilize advancements in digitalization to produce intelligent car lighting solutions, allowing multi-functionality from a single source. With its optimized approach, and by combining lighting and intelligent electronics, Osram Continental also strives to ensure market penetration of LED technology in all vehicle segments.
As such, the company will not only use software-based solutions to create a configurable light distribution system – for anti-glare dipped headlamps and high beam headlamps, for example – but it is also developing intelligent lighting functions. Using data from the navigation system and sensors, vehicles equipped with these solutions in the future will, for example, be able to project warning messages for other road users while driving.
Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transport. In 2017, Continental generated sales of €44 billion and currently employs more than 240,000 people in 61 countries.
In the Interior division, everything revolves around information management in the vehicle and beyond. The range of products for various vehicle categories includes instruments, multifunction displays, head-up displays, control devices, access and tire information systems, radios, infotainment and operating systems, climate control units, software, cockpits, telematics solutions and services, and intelligent transport systems. The Interior division employs more than 46,000 people worldwide and generated sales of €9.3 billion in 2017.
OSRAM, headquartered in Munich, is a leading global high-tech company that has been in the industry for over 110 years. The majority of its products are semiconductor-based and are used in a wide range of applications from virtual reality to autonomous driving and smartphones, all the way through to connected, intelligent lighting solutions for buildings and cities. OSRAM utilizes the endless possibilities offered by light to improve the lives of people and societies. In the future, OSRAM's innovations will not only allow us to see better, but also to communicate, travel, work and live better. At the end of the 2017 fiscal year (as at September 30), OSRAM employed around 26,400 people worldwide and generated sales of over €4.1 billion in this fiscal year. The company is listed on the stock exchanges in Frankfurt am Main and Munich under WKN: LED 400 (ticker symbol: OSR). For more information, www.osram.de.
The press release is available in the following languages: German, English