© Leoni Electronics Production | August 15, 2019
Leoni to expand its production plant in Mexico
Leoni says that the company is broadening its commitment to electromobility. With this new expansion work, the company’s Wire & Cable Solutions Division (WCS) will be enlarging its facility in Cuauhtémoc, Mexico by 7000 square metres with the option for a further 3000 square metres.
The purpose is to increase capacity to produce mostly EV charging cables and Hivocar high-voltage cables for vehicles with alternative drive. The company initiated the expansion with a foundation-laying ceremony on 14 August. As in many other countries, electromobility is on the up in North America; all the major carmakers have announced plans to further increase their product offering. The market share of electric cars in the United States is expected to exceed 15% in 2025. Leoni therefore intends to be prepared with greater capacity for the growing and changing market demands. With production in proximity to the customer, the Company can locally and flexibly supply products for electromobility made to the desired specifications. Contact with the principals is made significantly easier and the supply chain is shortened. Production is scheduled to start in the first quarter of 2020; initial samples are to make as early as the end of December, the company states in a press release. With this expansion, our facility in Cuauhtémoc will comprise 28'792 square metres of production space / total area and initially employ 100 additional staff in newly created jobs in addition to the present 790 employees. Leoni is investing more than USD 25 million in the plant’s expansion during the project phase. “We look forward to extending our product range. We have continually expanded our facility ever since it was established in 1998. Beyond single-core cables, multi-core Adascar cables and Dacar data cables, we can now also demonstrate our potency with high-voltage and charging cables,” says Everardo Avila, Managing Director of Leoni WCS Mexico, in a the release.