Leoni launches new factory in China

November 04, 2011 // By Christoph Hammerschmidt
Automotive wiring harness manufacturer Leoni AG has started production in its new plant in Jining, China. With the move, the company hopes to meet the rising demand from the automotive industry in this country. At the same time, Leoni is expanding its manufacturing capacities in other geographies.

In China, Leoni benefits from rising demand for cars already established at the market, to which the company provides the wiring harness systems. In addition, the Nuremberg-based manufacturer has won several assignments to equip new car models of several OEMs, the company said. During the remainder of 2011, three new projects will ramp up in Jining, mostly for customer General Motors.

The Jining campus has a production area of 25.000 square meters. During the launch phase, 1600 employees are working at the factory. In the medium term, the company plans employ about 3000 workers.

Including Jining, the Leoni group currently operates at eleven locations in China. After New Year, two joint ventures with Deakyung will become wholly-owned Leoni subsidiaries. China currently is Leon's third largest market, after Germany and France.

Currently the company plans 21 new investments into the production of wiring harnesses. For instance, two plants in Egypt are currently being in the planning phase, as well as one in Russia and Ukrainia. New production sites are being built also in Brazil, Morocco, Tunisia and Serbia.