1,100 jobs to go as Osram shuts Indonesia factory

Osram is closing its production site in Tangerang, Indonesia, as part of a restructuring programme that it hopes will save 1 billion by 2015.

The factory makes traditional products, mainly incandescent lamps, and employs 1,100 people. Its closure is the latest step in Osram's transition towards newer technologies, which has also seen it invest in a new LED assembly plant in the Chinese city of Wuxi.

The German manufacturer said in a statement: 'The regulatory framework coupled with the technological change underway in the lighting industry means that the traditional incandescent lamp is disappearing from the market in more and more regions around the globe. Not least because of this, Tangerang recently recorded declining production volumes, while costs were rising. A turnaround is not in sight as demand for traditional lighting products is expected to decrease further.'

Demand for LED products, on the other hand, is rising fast, the company said.

The closure of the Tangerang factory is part of a cost-cutting plan that will see 4,700 jobs go at Osram.

The manufacturer said it views Asia as 'the most important key market of the future, especially with regard to the expected LED development in the region'.

 

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