Leoni wins 75 million euro contract for cable harnesses
Leoni reported that its South Korean branch has won an additional order from Ssangyong Motor Company, a leading South Korean SUV manufacturer, for cable harnesses for a new car that will enter the market in 2015.
A press release said that the deal calls for Leoni to develop, produce and deliver several types of cable harnesses for one of Ssangyong's new cars, a compact SUV that was showcased as a concept car at the Geneva motor show 2012. The manufacturer plans to produce it in Korea for the local market as well as for Europe and other regions in the world, and the total lifetime revenues were projected at approximately 75 million euros.
Leoni's South Korean entity, based in Busan, was established from its 2012 acquisition of Daekyeung , a local wiring harness manufacturer, the release said. Due to higher integration and start-up costs, restructuring expenses and weaker operating performance, the new operation had a loss for 2012, it said. Now, the expectations are better, said Dr. Andreas Brand, a member of Leoni AG's Management Board, and the person in charge of the Wiring Systems Division."The new order from Ssangyong will contribute to the positive development of the business in the mid-term perspective," he said.