Leoni launches 4th automotive wiring factory in China

October 28, 2013 // By Christoph Hammerschmidt
Cabling systems manufacturer Leoni AG has inaugurated its fourth production site for automotive harnesses and wirings in China. The factory, based in Langfang, will supply such systems to Beijing Benz Automotive Co. (BBAC), a joint venture of Daimler AG (Germany) and Chinese carmaker BAIC. The production start in Langfang will translate into strong growth in China, Leoni hopes.

The company plans to double sales of wiring systems for passenger cars in China within four years to €400 million (about $552 million). The China business is a decisive building block in Leoni's globalisation strategy. Having established the factory in Langfang within just nine months, Leoni plans to invest a total of €30 million in this production site. Currently the factory manufactures wiring systems for Daimler's C-class vehicles; in the future it also will provide the cable harnesses for the GLA and GLK models. With an area of some 20.000 square meters, the factors accommodates 2.500 workers when working at full capacity. To illustrate the complexity of electric systems in premium passenger cars: The factory processes about 3 million meters of wires, 1.5 million connectors and thousands of other electrical and mechanical components and turn them into complete wiring systems. Each single product with a weight of up to 35 kg is assembled an tested on the most modern equipment to implement a zero-defect strategy before it will be transferred in a just-in-sequence manner to the customer's production line.

The Langfang factory is Leoni's fourth automotive production site in China after factories in Shanghai, Jininh and Penglai. All together, these factories employ 6000 workers. In addition, Leoni runs six further factories in China dedicated to diverse markets such as industrial, medical, and electric appliances