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Leoni has opened its fifth wiring systems factory China on 12 August. 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 (BBA). BBA is the joint venture between BMW of Germany and its Chinese partner Brilliance China Automotive Holdings.

“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,” Andreas Brand, member of the management board of Leoni 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 EUR35m (US$38.97m) 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 and cable solutions (WCS), operates a further seven plants in China with about 2,800 employees. These develop and produce wires and strands, optical fibres, special cables and cable solutions for such markets as industry, medical technology, household appliances, photovoltaic and, not least, also the automotive industry.

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By GlobalData