Leoni shuts down Ostrzeszow plant

2009-12-11



Leoni, a German manufacturer of cables, wires and wiring systems for the automotive sector, has decided to close down its factory in Ostrzeszow (Wielkopolskie voivodship) by the end of next year, as it adapts to a drop in demand and rising cost pressures. The company has already slashed 1,150 jobs at the plant over the past year in response to the crisis. The remaining approximately 500 jobs will disappear by 31 December 2010.
In a statement, Leoni explained that labour costs at the Ostrzeszow factory were too high for production there to be profitable under the new, tougher economic conditions, and that the operations had to be moved to other locations within the group with lower costs.
When the job cuts were first announced almost exactly a year ago, the company stressed that it had no plans to close the factory altogether, and that about 400 jobs would remain.