Osram to sell luminaires division

Osram will no longer manufacture luminaires, including downlights, the company has announced. It hopes to find a buyer for the division this autumn.

TWO YEARS after the company stopped making lamps, Osram has announced that it is selling its luminaire division.

Installing Osram luminaires at a sports ground. These fittings, along with other industrial and commercial lighting products, are manufactured at the company’s factory in Traunreut, Germany.

It has put up for sale its fittings division – which makes lights for street lighting and sports, industrial and commercial applications – so that it can focus on ‘smart lighting’, including lights connected to the so-called Internet of Things.

Osram chief Olaf Berlien described these areas as ‘applications with high growth potential’.

The luminaires – most of which are made in a factory in Traunreut, Germany – include high  bays, linear fittings, downlights, battens, trunking systems and specialist high-IP rated damp-proof lights.

Many have a heritage from Osram’s purchase of the Siteco brand in 2011. Siteco was originally part of Siemens – the parent company of Osram at the time – but was sold in 1997.

Potential buyers include Ledvance, the company formed from Osram’s lamps division in 2016. Ledvance has made a major strategic move into luminaires, most of which are made in Asia.

Osram’s sale of both its lamps and luminaires businesses in the space of two years – unthinkable a decade ago when Osram, along with Philips and GE, was part of the dominant Big Three  – reflects a dramatically transformed lighting market.

Over the period LEDs have disrupted the market, allowing China to make huge inroads, driving down prices for commodity products and cutting margins for traditional brands.

In its recent results, Osram said it was ‘holding its ground in a difficult market’.


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