Nuremberg, Germany – German automotive wiring supplier Leoni AG has secured a €330-million loan, 90% of which will be paid by the German government.
The Nuremberg group is discussing the loan, which runs until end of 2022, with its core banks and expects to conclude an agreement "soon", Leoni announced 20 April.
The German supplier said the new operating credit line will create financial flexibility as its key customers suspended production due to Covid-19 pandemic.
As a result of the halt in automotive manufacturing, Leoni said it experienced “a temporary, significant decline in sales volumes.”
The German supplier closed production facilities in Europe, North Africa and the Americas due to the global pandemic and introduced a “short-time work” scheme in Germany and other European locations in March.