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A global lighting issue

Navigating through market fluctuations

Rare Earth Oxides (REOs) phosphors are a critical component of fluorescent based lighting systems. The global shortage of these materials is currently having a direct impact on phosphor availability and pricing.

Linear fluorescent (TL), Compact Fluorescent Non-Integrated (CFLni) and Compact Fluorescent Integrated (CFLi) phosphors are all experiencing unprecedented shortages in global supply, resulting in Philips price increases of over 300% as of July 2011.

As a result of REO shortages, the cost is increasing and is having a direct impact on a global and industry wide scale. Experts predict that these shortages will continue through 2014 until new sources of supply will be able to ease the current situation.1

With manufacturing costs on the rise, Philips is forced to implement pricing actions on all Fluorescent based lighting products. Philips has executed global procurement programs to insure sourcing and is undertaking all strategies to best mitigate costs.

How does this affect you?

• Expert opinions vary, however, market conditions will remain unstable for the near future
• Fluorescent based lighting products will have continued price fluctuations
• Philips Lighting is working diligently to relieve the current supply issues on phosphors
• Philips Lighting is committed to:
    · Sound supply chain practices on a global scale in order to secure materials
    · Keeping you updated and informed on all market conditions and changes
• Philips Lighting highly values you, our customer, and appreciates your patience as we work together through these market conditions
• Please stay in contact with your local Philips Lighting Account Manager for any questions and updates, or for more information please keep checking this website


(1) and chart: U.S. Department of Energy 2010 Critical Materials Strategy Summary. “GTSO: Goldman Sachs Analyst Predicts ‘Severe’ Rare Earths Deficit.” 6 May 2011.

Important Materials

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