The new OSRAM factory production fozhao trapped competition

Enjoy the "Chinese light king", "cash cow" and "big boss" reputation of FSL is in before the cut off, after the pursuers of the situation.

In July 3rd, the first major shareholder of FSL SIEMENS, a wholly owned subsidiary of OSRAM Holdings Limited (hereinafter referred to as OSRAM) announced that it has substantial progress in Foshan's expansion plan, two new plant officially put into operation, to 2010, the total investment will reach 400 million yuan. "We plan to increase the sales of OSRAM's highly efficient lighting products by 80% within the next 10 years." OSRAM Global CEO Gu Zile said.

Prior to January, OSRAM successfully bid for the Guangzhou international financial center (West Tower) of the curtain wall lighting LED (semiconductor light-emitting diode) products, with more than 32 million yuan worth of orders.

Repeated action is not to highlight the ambitious development of OSRAM in China, of course, to give FSL a more aggressive attack. During the same period, the industry's rising star Zhejiang sunshine, snow Wright is also in rapid development.

In front of the direct competition of major shareholders, after the Zhejiang sunshine, snow Wright to seize market share in the case, FSL is also full of brilliant road to recast.

Commitment failure

In the international market to develop China lighting giant attack cities and capture territories under the background, FSL has taken a "copycat".

2005, Foshan SASAC will hold 23.97% stake in FSL's state-owned shares were transferred to OSRAM holdings and Hongkong Chang Chang lighting equipment Co., Ltd., which holds the former to become the largest shareholder of the 13.47%. OSRAM is a wholly owned subsidiary of SIEMENS, is one of the world's two largest manufacturer of light sources.

A prominent shareholder of the life story was raised FSL's market expectations, in August 31, 2004, OSRAM and FSL signed a share transfer contract is the root cause of these expectations.

According to the above contract shows that OSRAM made three commitments in the acquisition:

One is four years after the reform and the sale of shares in the equity transfer is completed, the proposed profit distribution proposal in FSL's annual meeting and vote for the proposed allocation of the bill profit distribution ratio of not less than one year to achieve FSL profit distribution 65%.

The two is the reform of non tradable shares and the sale of shares transfer is completed within five years after the acquisition of OSRAM will buy the contract in accordance with the terms of lamp products to buy the FSL lamp at least $10 million or more, the most important is that OSRAM is committed in the transfer of shares is completed, FSL will be in accordance with the agreed terms and conditions considered backward provide appropriate technical assistance and know-how.

4 years back, the original commitment has now become a mere scrap of paper.

According to the Foshan local familiar with FSL regarding the equity transfer of stock sources, OSRAM in 2005 FSL, took a fancy to its production scale and production capacity of the base, the use of FSL OEM own brand products, put into production base in Asia Pacific region, the Asia Pacific region to compete with PHILPS, Chinese and global market, strengthen the monopoly position.

FSL introduced OSRAM is to avoid investing heavily in research and development and to avoid the uncertainty faced by R & D.

However, the so-called complementary advantages between FSL and OSRAM did not produce.

In 2007, OSRAM began to build its own factory in Foshan, which is expected to reach a total investment of 400 million yuan by the end of the year, with a total of four years of expansion plan in 2010. OSRAM claims that by 2010, Foshan plant will become one of the world's largest production and research and development base of OSRAM, and will provide more than 800 production and research and development related positions in Foshan.

On the other hand, FSL chairman Zhong Xin also publicly said, from the current point of view is not a viable way to rely on external introduction, the key is to rely on their own."

A variety of antagonistic behavior, so that cooperation into the impasse.

Trade competition

In fact, OSRAM has a direct competitive relationship with FSL in some of the business, involving competition in the industry." Shenzhen, a broker researcher told reporters that the current situation, the impact will not be too great."

But the reporter learned that OSRAM plans to provide 14 million 500 thousand green lighting products in China during the period of 2008 and 2009, while FSL's annual production of energy-saving lamps have only 50 million.

More importantly, as the focus of the development of FSL's LED business, but can not get the technical support of major shareholders, only in Japan or South Korea to seek partners.

Although OSRAM's global CEO Gu Zile stated, will be in accordance with the agreement, each year to purchase large quantities of FSL products, and provide some technology in the permission scope.

But in 2008, FSL's shareholders' meeting, Zhong Xincai said that at present has been looking for overseas partners, cooperation must be willing to provide patent technology.

At present, the core technology of LED in the hands of OSRAM, Nichia, Samsung and Lumileds and other international companies. Since OSRAM has no intention of cooperation in LED and FSL, then FSL can only choose another partner.

According to FSL insiders, although several times to South Korea and Japan, but the project has not clear.

At this point, OSRAM's LED products are in the domestic market to show their talents. In addition to the bid to 32 million yuan in June this year, the recent OSRAM LED also won the Guangdong Zhonglong Communications Technology Co. Ltd. order, its products for the Shanghai Yangtze River tunnel lighting project.