German cable-maker Leoni AG expands its Pune facility; invests €10m more

German cable manufacturer Leoni AG announces that it has enhanced its location in Chakan/Pune, India. The company inaugurated an electron beam accelerator, which allows the company to provide high performance cables to customers from various industries such as railway or solar.

MUMBAI: : German cable manufacturer Leoni has invested an additional €10 million (about ₹76 crore) for the expansion of its existing manufacturing facility at Chakan near Pune.

Leoni AG – a Nuremberg, Germany based company is a cable and harnessing manufacturing firm with branches throughout the world. Leoni Cable Solutions India is a wholly-owned subsidiary of Nuremberg, Germany-headquartered Leoni Group. Leoni made all cables and powercords for Dell and Gateway 2000 during the dot-com boom of the 1990s in their plant in Birr, Offaly, Ireland, which was then moved to Slovakia. It is listed on the Frankfurt Stock Exchange and is a member of the mid-cap MDAX index, and is claimed as global leader of cable systems.

The company’s total investment at the facility, which was commissioned in 2013, stands at €20 million. “We will be manufacturing two new products — solar DC cables and cables for transportation (Railways) – from the plant.

“We will also be looking at exporting these products to Middle East, Africa, South East Asia and Australia, apart from selling them in the country,” said Pushpendra Singh, Managing Director, Leoni Cable Solutions India. “This is the next phase of our evolution in India. “We began to develop this market in 2010, with an engineering office and a manufacturing facility for automotive wiring systems,” he added.

Now, the combined production area has increased to more than 20,000 sq m and manufacturing capacity to 80,000 km per year of electron beam cross-linked cables.

“I am confident, that this major investment will contribute to the growth of our business in India. Thanks to the new technology, we are able to provide superior solutions for the country’s rising needs with regard to the initiative ‘Make in India’”, states Bruno Fankhauser, member of Leoni AG’s Board of Directors with responsibility for the Wire & Cable Solutions Division.

India is an important country for the realisation of the Company’s globalisation strategy. The expansion at Pune aims to strengthen its position in the country and enable it to support India’s economic development as well as generate employment opportunities in the country. Future involves the development and production of state-of-the-art data cables for autonomous driving. These are particularly suited for high data rates at frequencies of several GHz and are used on both infotainment and driver assistance systems. This new generation of data cables will furthermore facilitate connecting a large number of such components as car-to-x communication, which links vehicles with each other and also with transport infrastructure; he said.

The combined production area has increased to more than 20’000 square meters and a capacity to manufacture 80’000 kilometers per year of electron beam cross linked cables, which ensure a higher degree of safety, superior performance and greater efficiency. In the e-beam process, Leoni treats its cables with extremely accelerated electrons, thus crosslinking their chemical structure. As a consequence, the cables obtain the properties of comparatively more expensive, usually more difficult to process high performance products. The e-beam process makes cables, for example, more dimensionally stable when subjected to heat, more resistant to chemicals, solvents and temperature fluctuation as well as harder and more resistant to abrasion.

Based on an estimated construction period of about two years, Leoni expects to start step-by-step relocation of its ongoing production from the existing plant in early 2019. Relocation of the roughly 800 employees to the Factory of the Future is likely to be completed in mid-2020.