Osram to Focus on Automotive Lighting

Osram GmbH appears to be preparing to spin off its €2 billion general lamp business so it can concentrate on its more profitable automotive and specialty lighting operations.

Next week the company's supervisory board will review a plan to transfer the Munich-based company's general lighting lamps unit, including LEDs, into an independent legal structure. Osram says the move will "provide the basis for the further development of the business."

The split follows a similar move by Dutch rival Royal Philips NV. Both companies, which face growing competition from Asian LED lamp producers, are considering a spinoff or sale of their conventional lighting businesses.