Osram Licht AG's Malaysian unit, Osram Opto Semiconductors (M) Sdn Bhd, is setting up a research and development (R&D) center here to serve the general lighting and illumination sector in Asia.

"The Asian region accounts for a very high proportion of worldwide sales in the general lighting segment and this figure is set to rise to 80% by 2020," said Osram Opto managing director Dr. Roland Mueller.

Thus, the center, to be situated on a 5,500 square meter land next to its manufacturing plant in the Bayan Lepas Free Industrial Zone, would act as an enabler to increase manufacturing in the plant, he said, adding that the company is taking the necessary steps to increase its capability in this area.

Speaking to reporters after exchanging leasing documents with Penang Chief Minister Lim Guan Eng, Mueller said the center would house 300 staff, including engineers, when it begins operations early next year.

Meanwhile, Lim said Penang Development Corporation would build and lease the RM15.5 million (US $3.74 million) additional three-story factory to Osram, which has been in Penang for 43 years.

"This expansion is seen not only as another important new milestone for Osram, but also a strategic investment for Penang. The expansion will focus on high-skilled business and technology roles, which in turn creates a high value employment for talents here," Lim said.