Konica Minolta eyes $1 bln in OLED lighting sales

* To launch OLED lighting equipment by March 2011

* To build large-scale plant for OLED lighting by March 2014

* Aims for over 100 bln yen in OLED lighting sales by 2017/18

By Kiyoshi Takenaka

TOKYO, Nov 13 (Reuters) - Japan's Konica Minolta Holdings Inc (4902.T) said it will launch advanced lighting equipment based on organic light-emitting diode technology by March 2011 and targets annual sales of more than 100 billion yen ($1.1 billion) by 2017.

OLED lighting, which uses organic or carbon-containing compounds that emit light when electricity is applied, is a promising next-generation lighting fixture as it is light, thin and bendable, and unlike fluorescent lamps is also mercury-free.

"Management at Konica Minolta is committed to making OLED lighting one of our major business pillars in the mid to long term," senior executive officer Shoei Yamana told a group reporters on Thursday. His remarks were embargoed until Friday.

Securing a new growth business is important for Konica Minolta, which faces sluggish office equipment demand as companies worldwide are curbing spending on information technology following the global downturn last year.

Konica Minolta, which competes with Xerox Corp (XRX.N), Canon Inc (7751.T) and Ricoh Co Ltd (7752.T) in copiers and printers, is developing OLED lighting gear with General Electric Co (GE.N) of the United States.

Konica Minolta plans to spend 3.5 billion yen to build an initial production line on the outskirts of Tokyo by late 2010, with a product launch scheduled by March 2011.

It will use a so-called roll-to-roll production method, which allows the high-speed and cost-efficient manufacturing of OLED lighting equipment.

Konica Minolta tentatively plans to build another production facility in Japan with larger output capacity by March 2014.

The size of capital spending and specific production capacity for the new plant are unavailable, but Konica Minolta will spend at least 10 billion yen to build the factory, Yamana said.

Konica Minolta expects OLED lighting to replace traditional lighting fixtures such as fluorescent lamps as production expands and costs come down.

The lightweight, paper-thin lighting gear will also likely be ideal for use in cars and aircraft, Yamana said.

Konica Minolta is targeting OLED lighting sales in excess of 100 billion yen by the financial year ending March 2017 or in the following year, he said.

That compares with its consolidated sales forecast of 817 billion yen for the current business year to March 2010. ($1=89.85 Yen) (Editing by Michael Watson)