© pichetw dreamstime.com Electronics Production | September 12, 2016
Leoni buys majority stake in Chinese harness maker
Leoni has purchased 51% of the wiring harness manufacturer Wuhan Hengtong Automotive in China.
With this acquisition, the European cables- and cable systems provider will become a supplier of the Dongfeng Group and thus assures its future growth in the Asian market. Leoni will own the majority stake of the wiring harness plant located approximately 700 kilometers west of Shanghai. The location in the Hubei province measures more than 13’000 square metres and today counts almost 1’000 employees. The company is supposed to produce and deliver wiring systems for local car manufacturers, in particular the Dongfeng Group, China’s second largest car producer. In a first step, it will supply DPCA, the joint venture of Dongfeng and the French manufacturer PSA.