Wire harness maker Leoni restores some Ukraine output (updated)

Fujikura

23/03/2022 10:29

(Adds detail from press call)
    BERLIN, March 23 (Reuters) - German cable and harness maker
Leoni  LEOGn.DE , which supplies automakers with wire harnesses
crucial for car production, has returned to producing at 40%
capacity in Ukraine after a temporary halt due to Russia's
invasion, it said on Wednesday.
    A night shift is being added to bring this up to 70%, though
workers are still operating under a nighttime curfew and the
risk of rocket attacks, and have had to flee to on-site bunkers
on multiple occasions, chief executive Aldo Kamper said.
    Still, cross-border trade is possible, with the company able
to source its own components and raw materials and export
products, he said.
    Some production is being relocated to Leoni plants in
countries including Romania, Serbia, Slovakia, Tunisia, Egypt
and Morocco - but the company and its automaker clients are
committed to keeping Ukraine as a supplier, Kamper said.
    Carmakers including BMW  BMWG.DE , Volkswagen  VOWG_p.DE 
and Mercedes-Benz  MBGn.DE  have been forced to cut shifts and
reduce working hours at factories in Germany as the lack of
parts from Ukraine limited their production
capacities. urn:newsml:reuters.com:*:nL5N2VP53Y  urn:newsml:reuters.com:*:nL5N2VJ158  urn:newsml:reuters.com:*:nL5N2VI1NM
    Western Ukraine, with its low-cost, highly-skilled workforce
and proximity to Europe's car factories and a wealth of raw
materials, has grown into a major production hub for wire
harnesses, with Japan's Fujikura  5803.T  and France's Nexans
 NEXS.PA  among companies producing there.  urn:newsml:reuters.com:*:nL2N2VE1GC
    Leoni has 7,000 employees in Ukraine and 2,000 in Russia,
and had expected to bring in just under 400 million euros ($441
million) in revenue from the two countries this year.
    The company, which grew its revenue and earnings before
interest and taxes last year despite rising logistics costs in
the second half, expects lower revenue and earnings this year
due to the impact of the war and wider supply chain disruptions,
it said on Wednesday.
    ($1 = 0.9079 euros)

 (Reporting by Victoria Waldersee
Editing by Madeline Chambers and Mark Potter)
 ((Victoria.Waldersee@thomsonreuters.com;))