July 17, 2017: Osram is planning to get into a joint venture with a German automotive manufacturing company, Continental, to develop products for automotive lighting.
According to Reuters, the joint venture, will also hire about 1,500 employees, and will start in early 2018. Osram and Continental will both invest an around EUR 200-300 million to to start this new unit. According to the report, Osram will shift some of its automotive lighting business to the new venture, and will integrate with Continental’s electronic control systems.
The joint venture will develop automotive lighting products, but the companies are yet to finalize the commercial terms of the pact.
According to Osram’s 2Q17 financial report, due to strong demand from the vehicle industry, the revenue of its specialty lighting business, including automotive lighting, rose by 8% YoY. The EBITDA margin hiked to 16.2%, higher than 15.8% in 2Q16.