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Rare Earth Oxides
Rare earth oxides (REOs) are critical to a variety of high-tech products and manufacturing processes, including catalytic converters, petroleum refining, color TV and flat panel displays, permanent magnets, batteries for hybrid and electric vehicles, medical devices, and phosphor powders used in fluorescent lamps.
REOs 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.
Specific to lighting, linear fluorescent (TL), compact fluorescent non–integrated (CFLni), and compact fluorescent integrated (CFLi) are the three categories of lamps that are most affected.
As a result of REO shortages, product costs are increasing and 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 are able to ease the current situation.
With manufacturing costs on the rise, Philips (WESCO’s preferred lamps provider) and the other major lamp manufacturers have been forced to implement pricing actions on all fluorescent-based lighting products. Philips has executed global procurement programs to ensure sourcing and is undertaking all strategies to best mitigate cost increases.
For the latest REO information, visit www.philips.com/phosphor.
