It is reported that OSRAM agreed to sell its traditional factory located in Shaoxing, China, because Siemens' subsidiary OSRAM achieved poor performance, and lighting equipment department intends to streamline business before it is listed to focus on LED lighting development.

Siemens' OSRAM stated in e-mail that ZhuoMing Electronics will acquire this plant specializing in the production of traditional lighting bulbs, and this plant currently has about 2,000 employees. Siemens did not disclose the purchase price.

Osram plans to lay off a maximum of 8000 staff, selling the factory located in Shaoxing, China is also one part of its staff reduction plan. At the same time, Siemens will invest 100 million Euros to set up new LED assembly plant in Jiangsu, China.

Wolfgang Dehen, Osram's CEO, previously said that this sale marks another milestone in the realignment of the company; the company will focus on profitable growth and plan to further improve the LED proportion of total business revenue.

OSRAM was officially split and listed on July 8 this year. In a recent investor presentation, Siemens estimates that LED lighting will take up 45% of the global lighting market by 2016, about 99 billion Euros, and the share will rise to 66% by 2020, about 113 billion Euros.