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.