Osram, one of the world's largest lighting manufacturers, is expanding its research, development and production capacity in China.
The company, which has its headquarters in Germany, this month will open an expansion of its R&D and production base in Foshan.
The expansion project, which cost 400 million yuan ($58.56 million), began in 2007 and will be in full operation by 2010.
The expansion will make the Foshan site one of Osram's largest R&D and production bases worldwide.
The expanded facility will specialize in research, development and the production of energy-saving and environmentally friendly products ranging from compact fluorescent lights to Halogen energy-saving lamps primarily for the market in China.
"China is promoting an energy-efficiency lighting program and is subsidizing 150 million energy-efficient lighting products from 2008 to 2010," said Lars Johnsen, president of Osram China.
"We hope to develop and supply more innovative, energy-saving and cost-effective lighting products for the booming market in China," he said.
Johnsen said his company won the bid for six projects for the country's energy-efficiency lighting promotions program this year.
Osram will produce 6.6 million energy-saving lamps for Beijing, Shanghai, Guangdong, Sichuan, Tianjin, Jiangsu and Hunan.
The firm's contracts with China's so-called "green lighting" program for 2008 involved selling 5.8 million energy-saving lighting products in Beijing, Shanghai, Henan, Hebei, Guangxi and Ningxia.
Osram exceeded its goal for the 2008 contracts, selling 7.9 million units.
China announced its plan to subsidize energy-efficiency lighting products in 2008.
China is offering subsidies to suppliers to promote sales of 150 million energy-saving lighting products by the year 2010.
The goal is to lower power consumption by 29 billion kW hours, lessen carbon dioxide emissions by 29 million tons and lower sulfur dioxide emissions by 290,000 tons annually.
The government is offering a 30 percent subsidy to contracted suppliers on wholesale purchases and a 50 percent subsidy on retail sales.
"We see huge prospects for the green lighting market in China," said Martin Goetzeler, president and CEO of OSRAM.
"We are well positioned to provide innovative, competitive, cost-efficient and energy- efficient lighting products to meet the growing demands in China," Goetzeler said.
Expansion of the Foshan plant will enhance the company's global manufacturing network, Goetzeler said.
Osram has 46 factories in 17 countries.
"As the center of competence in the Asia-Pacific region, Osram China will play an even more important role in our global business," Goetzeler said.
Goetzeler said that energy-saving products will make up 80 percent of all its products within the next 10 years.
Osram has five production sites and five R&D centers in China, and its staff in China outnumbers its staff in any other country.