Wire, cable and wiring systems manufacturer Leoni will acquire 50 percent of the shares in Daekyeung, a leading Korean producer of wiring systems. Daekyeung’s existing customer base will give Leoni direct access to key motor vehicle manufacturers such as GMDAT (General Motors Daewoo Auto & Technology), SsangYong Motors as well as the special vehicles maker Volvo Construction Equipment. The Group will thereby have an ideal launch pad for tapping into the Korean market, world’s fifth largest for vehicles.

Jointly seizing growth opportunities

Leoni and Daekyeung already signed a joint venture agreement last year on shared development of cable harnesses for the compact and small car class of customer General Motors. With this investment, the partners will place their existing collaboration on a lasting footing and intend with pooled resources to bid for new contracts from, among others, the increasingly significant South Korean motor vehicle industry.

Key step in Leoni’s expansion strategy

Daekyeung, which is based in Busan, South Korea, employs about 1,900 people and has production facilities in China. The family business established in 1989 generated sales of about EUR 70 million in the 2007 financial year from development and production of cable harnesses for passenger cars and commercial vehicles.

This investment is another key step in the expansion strategy of the Leoni Group’s Wiring Systems division. It has set itself the goal of significantly increasing its business in high growth markets like China and Korea, and in the medium term of generating about 15 to 20 percent of its sales in Asia.