Stolberg, Germany – Leoni AG is studying the future of its cables production plant at Stolberg, in western Germany, as part of a streamlining process currently underway within its Wire and Cable Systems (WCS) business.
In its third quarter results on 11 Nov, the German supplier said it had notified employee representatives as well as staff at Leoni Kerpen GmbH of "the intention to cease business activity" at the plant.
The site which employs over 400 people develops and manufactures cabling systems for IT products, as well as the automotive and oil & gas industries.
In its third quarter presentation, Leoni said it will close down oil & gas activities at the Stolberg site, while reviewing possibilities for the continuation of other operations at the facility under new ownership.
The German cables and wiring specialist is currently in the process of separating its WCS business, which is focused on cable solutions, from its other core business Wiring Systems Division (WSD) which specialises in energy and data systems.
Speaking during an 11-Nov earnings call, chairman, president and CEO Aldo Kamper said the discontinuation of operations at Leoni Kerpen was part of the separation process and “a good example that we are making progress, streamlining portfolio of WCS.”
According to the company boss, the organisational and legal process to carve out subunits from the division is expected to be completed in early 2021.
“We’ve received first signals of interest in acquiring some businesses. However, the current M&A environment remains challenging,” he noted.
Amongst other products, Leoni WCS business supplies TPE-based and elastomeric cables to the various industries.