Osram GmbH, Munich, the lighting manufacturer, will be taking over around 90% of the shares in Svet, the fluorescent lamp manufacturer in Smolensk, from the Alfa Bank Group, Moscow, with effect from January 1, 2004:
The contract was signed on September 30 in Moscow. No details of the purchase price were disclosed. The remaining 10% will continue to be held by small shareholders. This new production site provides Osram with access to the mass market in fluorescent lamps in Russia and the entire eastern European region.
"By taking over Svet we will be in a much better position on the highly promising eastern European market, particularly in the price segments that we have not covered to date", said Dr. Wolf-Dieter Bopst, President of Osram. "We believe we have an excellent opportunity in the medium term to double our market share in Russia from its present level of around 10%". The Russian lamp market has a volume of around €200 million.
Big investment planned:
In fiscal year 2002 (end of December), Svet's 2000 employees achieved sales of €12 million in the tubular fluorescent lamps and starters sector. The production of glass bottles, in which around 300 employees work, is not part of the core business and not subject to the take-over. Osram has been represented by a sales company in Russia since 1995 and achieved sales of around €20 million there in fiscal year 2002 (end of September). This international lighting manufacturer is planning to invest more than €10 million in Smolensk over the next five years, including more than €2 million in environment protection.
About Osram:
Osram is one of the two largest lighting manufacturers in the world. Sales in fiscal year 2002 (end of September) totalled €4.4 billion, 89% of which outside Germany. Osram has developed from a classic light bulb manufacturer into a high-tech company in the lighting industry. Around 40% of sales comes from products that are less than five years old. This global player employs more than 35,000 people worldwide, supplies customers in some 140 countries and has 54 production facilities in 18 countries.
Osram Ltd.,
Osram House
Waterside Drive, Langley,
Berkshire SL3 6EZ
Tel: 01744 812 221
Fax: 01744 831 900
Web: www.osram.co.uk