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Mitsubishi Electric to Restructure Lighting Business

Three lighting-related affiliates to merge as of October 1, 2012

Tokyo, April 16, 2012 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has decided to restructure its lighting business for greater efficiency in expanding its business and responding to rapid developments in light-emitting diode (LED) technologies and other market conditions in the Japanese lighting industry. The company's three lighting-related affiliates will be merged as of October 1, 2012, with further details to be decided.

In the late 1980s, Mitsubishi Electric established two joint ventures in Japan with Germany-based Osram AG, aiming to reinforce its lighting business by integrating Osram's technological strengths with Mitsubishi Electric's sales advantages. Osram-Melco Ltd. handled production of fluorescent and other lamps and Mitsubishi Electric Osram Ltd. sold these products. In 1989, Mitsubishi Electric also established Mitsubishi Electric Lighting Corporation as a wholly owned subsidiary to manufacture and sell lighting fixtures.

Increasing environmental awareness has focused attention on LED lighting as a sustainable product. Especially following the Great East Japan Earthquake in 2011, the adoption of LED lightings has accelerated in Japan as a means of saving energy. Now that advances in LED lighting have created needs to integrate lamps and lighting fixtures, the joint venture relationship between Mitsubishi Electric and Osram will be constructively dissolved in the process of the merger. However, in consideration of the solid 23-year relationship, Mitsubishi Electric and Osram have agreed to maintain ties in the areas of sales and production, and continue to be strategic global partners in the lighting business.

Mitsubishi Electric's new lighting company will handle a wide variety of products, from lamps to lighting fixtures, which will strengthen Mitsubishi Electric's capabilities to satisfy market demands and offer customer solutions. The company will expand its product lineup by enhanced development capabilities realized through the integration of resources for marketing and development. It will also strengthen product development, mainly for LED lighting products, through the combination of technological synergies and cooperation with Mitsubishi Electric's R&D centers.