German auto supplier Leoni to apply for state aid

Leoni AG

23/03/2020 10:02

FRANKFURT, March 23 (Reuters) - German auto supplier Leoni
 LEOGn.DE  said it would close plants, reduce the working hours
of its staff and apply for state aid as a way to counter the
fallout from the coronavirus.
    Leoni's business was struggling before the coronavirus
crisis hit. But steps by major carmakers to idle plants in
Europe has led to a further decline in business for the
Nuremberg, Germany-based auto supplier.
    "Leoni AG expects considerable burdens on sales, earnings
and liquidity. The level of this impact is not foreseeable at
this stage," Leoni said.
    Leoni plans to close plants in Europe, North Africa and the
Americas and to introduce short-time work in Germany, responding
to plant closures by carmakers, which are expected to last at
least four weeks.
     "Leoni will also take up the offer of the German government
and plans to apply for financial aid. These funds will increase
the financial flexibility of the company and are to be used at
group level to ensure the continuation of business operations,"
Leoni said.
    The German Economy Ministry said on Monday that companies
could immediately apply for the KfW state development bank's
programme to support the economy in 2020 as the world battles a
coronavirus outbreak. It said the funds in the programme were
unlimited and available to small, medium-sized and large
companies.  S8N2BA00Z 

 (Reporting by Edward Taylor
Editing by Michelle Martin)
 ((Edward.Taylor@thomsonreuters.com; +49 69 7565 1187;))