Leoni commissions fifth wiring systems production plant in China

Expansion of business in China with a new customer

Nuremberg – Leoni, the leading European provider of cables and cable systems to the automotive sector and other industries, yesterday opened what is now its fifth wiring systems factory China. The facility located in Tieling, northern China will develop and manufacture products for several vehicle models of the Company's new customer BMW Brilliance Automotive Ltd. (BBA). BBA is the joint venture between BMW AG of Germany and its Chinese partner Brilliance China Automotive Holdings Ltd.

“We are delighted to have significantly expanded our production capacity in China with this plant in Tieling and from there to be able to supply BBA as a new customer,” Dr Andreas Brand, member of the Management Board of Leoni AG in charge of the Wiring Systems Division (WSD), said on the occasion of the opening ceremony. “The facility underscores that Leoni continues to see promise in the growth market of China and is able broaden its business with additional contracts.” Leoni is investing a total of EUR 35 million in the new building and equipment in Tieling – with an area totalling more than 25,000 square metres, the plant provides space for up to 2,000 employees when running at full capacity. Serial production is scheduled to commence in early 2016.

The new plant in Tieling is the Wiring Systems Division’s fifth alongside its production facilities in Shanghai, Jining, Penglai and Langfang, which employ a total of about 6,300 people. All the plants produce cable harnesses and wiring systems for the car and commercial vehicle industry, also supplying local manufacturers in addition to customers based in Europe and the Americas. Moreover, Leoni WSD has an additional location with operational units in Changchun.

Leoni’s other division, Wire & Cable Solutions (WCS), operates a further seven plants in China with about 2,800 employees. These develop and produce wires & strands, optical fibers, special cables and cable solutions for such markets as industry, medical technology, household appliances, photovoltaic and, not least, also the automotive industry. Overall, the Leoni Group has been present in China for over 20 years and now employs more than 9,000 people in 12 plants in the country.