Over 160 jobs at the Stolberg site to be retained under new owners
Leoni plans to sell the data communication and compound business units to a consortium of buyers led by current managing director
Under the agreement now reached, the data communications and compound businesses are expected to be transferred to the consortium of buyers led by David Schlenter in the middle of this year. This would allow more than 160 of the approximately 380 jobs to be retained at the site.
The sale is currently still subject to various conditions.
"We are very pleased about the initial agreement with the potential buyers on the data communications and compound areas, which could preserve a significant number of jobs," says Aldo Kamper, CEO of Leoni AG. "The decision to discontinue business activities at the Stolberg site was not an easy one for us. However, against the background of a continuing critical economic development of the site, we had to act. The agreement now reached is a positive signal for the future of the Stolberg site and a next step towards Leoni’s economic recovery."
The business activities for the oil and gas industry at the Stolberg site will be discontinued, as announced in October 2020. The reason for this is the prevailing competitive and price pressure, which has intensified again in recent years and has led to a sharp decline in sales and high losses at Leoni for years. Despite major investments and efforts by all involved in recent years, it has not been possible to operate this business profitably at the Stolberg site. Production in the oil and gas business segment will end in Stolberg during the third quarter of 2021.
The business activities from the automotive sector, which were temporarily brought to Stolberg as a measure to support capacity utilisation, will be discontinued and transferred back to the originally intended locations. This measure is expected to be completed in the course of the fourth quarter of 2021.
Both the discontinuation of the Oil and Gas Industry business unit and the relocation of the Automotive activities will take place independently of the planned sale of the Data Communication and Compound businesses.