Harness and electricals supplier Commercial Vehicle Group is moving to a new factory in L’viv, Ukraine from a building in Kamyanets-Podilsky at a cost of about US$1.2m to $1.4m. The Company expects the capital requirements to be substantially completed in the second half of 2012.
The new 8,000 sq m (86,211 sq ft) building will produce wire harnesses and other electrical distribution system products for both light vehicles and commercial vehicles such as heavy trucks and construction equipment. Pre-launch activities have already commenced with a formal opening scheduled for October 2012 when total employment is expected to be approximately 125. Existing orders should result in the employment of approximately 650 workers by the end of 2013 when all work is launched or transferred to the new building.
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The new L’viv plant will produce wire harnesses for Webasto, Continental and CVG’s new Skoda Auto contract announced in November 2010 and set to begin production in 2012.
That contract calls for CVG to provide wire harnesses to be used in car doors, seats, bumpers and parking sensors for two new car lines. Currently, CVG is delivering similar products for the Yeti and Superb.
In addition to the manufacture of parts, CVG is also supplying Skoda with design activities, development and engineering services, drawings, prototyping, production samples and customer service assistance.
Kevin Frailey, President and General Manager – Electrical Systems for CVG, said: “Our new plant, which has space for growth, is located in an area that has a very stable and capable workforce. We believe it will keep CVG more competitive in the eurozone and help us pursue new business in a rapidly developing part of the world.
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By GlobalData“This new factory puts us approximately 300km, or 186 miles, closer to our European customers. We expect that will result in better customer responsiveness and reduced freight costs. We also expect it will also help us accelerate lead times and inventory turnover.”
