Leoni continues globalisation in India
Monday, May 06, 2013Leoni, the leading provider of cables and cable systems to the automotive sector and other industries, persists with its globalisation strategy by expanding its business in India. Today, the company officially opened its new plant near Pune, from where it will deliver customers from different industries with cables and cable systems.
“India promises attractive medium- and long-term growth prospects for several of our targeted industrial markets”, says Dr. Klaus Probst, President and CEO of Leoni AG. “Opening this new plant near Pune is an essential move to better serve local customers and to drive our globalization in India and close-by countries.” The establishment of a plant brings advantages such as better logistics conditions, the usage of local cost structures and the avoidance of import duties.. Until the end of the year, Leoni plans to make an investment of around EUR 11 million for the facilities and the equipment and to have about 140 employees.
The new plant has a production area of around 15.000 square metres and has already started the manufacturing of standard cables for the fast growing automotive industry at the beginning of the year. At a later date, the new plant shall also produce automotive special cables.
Experts estimate the annual growth rate of the Indian automotive market amounting to about 12 per cent until 2016 then reaching 5.8 million locally produced units per year.
Now, Leoni also commences local production of cables and cable systems for the renewable energy market in order to serve the rising demand in this field. The company offers a wide range of power and control cables for photovoltaic and solar power plants as well as wind turbines.
Furthermore, the company will locally produce standard cables, application-specific special cables, ready-to-connect assembled cables, sub-systems as well as complete system solutions for rail vehicles such as high-speed trains, locomotives, trams, metros and cargo railcars.
Leoni also plans to install electron beam equipment at the latest by 2015, to manufacture the latest generation of very robust and durable cables for solar and railway applications. Last but not least, the new facility will make cables for critical applications in oil & gas, petrochemicals, power plants, water treatment and other process industries. Leoni plans to export a major portion of such products to other countries.
The new plant in Pune is Leoni’s second production site in India. In 2010, the company already opened an engineering office and a manufacturing facility for automotive wiring systems, which is located in the Pune area as well. The region is a significant industrial center within India, where in particular the local and international automobile industry is very present.