HONG KONG, July 30, 2007 (PRIME NEWSWIRE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced an expansion of its existing OEM business from OSRAM GmbH, a subsidiary of Siemens AG (NYSE:SI), with the addition of orders for a product line of batten fixtures for T8 fluorescent lights designed for the European consumer market. OEM production has commenced.
The company also said it received a tooling order from OSRAM for complete OEM production for another lighting fixture product series. The new order for the lighting fixture model and the subsequent products that will be produced following the completion of tooling are expected to increase sales derived from OSRAM's lighting fixture business by an estimated 50 percent annually. Additional lighting fixture business is expected based on the company's past experience and OSRAM's strategic focus on utilizing select and reliable vendor relationships. Terms were not disclosed.
"This new OEM contract is the result of management's ongoing focus to leverage the company's expanding manufacturing capabilities to produce more sophisticated and complete products for global customers. The relationship with OSRAM commenced in 1992, and since its inception has developed into a very solid relationship," said Roland Kohl, president and chief executive officer.
He noted that recent vendor evaluation reports for metal casing OEM production for OSRAM have been good-to-outstanding, based on criteria such as business, technology, logistics, quality and price. "Our relationships with multi-national customers have developed over a period of many years -- predicated on the company's solid manufacturing performance and the establishment of mutual understanding and respect. As a result, our revenue growth is expected to gain further momentum based on these established relationships and the importance our clients place on service, manufacturing capabilities and capacity - qualities not easily replicated," Kohl added.
OSRAM is one of the two leading lighting manufacturers in the world. Sales for the year ended September 30, 2006 totalled 4.6 billion euros, 88 percent of which came from outside Germany. OSRAM is a high-tech company in the lighting sector. Around 40 percent of sales come from innovative products. This global player employs around 40,000 people worldwide, supplies customers in some 150 countries and has 49 production facilities in 18 countries.
About Highway Holdings
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products. Highway Holdings is headquartered in Hong Kong and operates four manufacturing facilities in the People's Republic of China.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.