Leoni selling automotive cables business to Thai manufacturer

NUREMBERG, Germany—Leoni A.G. has taken a major step toward streamlining its businesses with the sale of the automotive standard and special cables operations.

Bundled in the business group automotive cable solutions (BG AM), the operations are being sold to Stark Corp., a Thailand-based manufacturer of wire and cables to various industries.

In a statement, the German automotive supplier said the move was in line with its decision to narrow its focus on the wiring systems business. According to Leoni CEO Aldo Kamper, the divested unit is "very well and profitably positioned globally."

"It has a broad and innovative product portfolio and is one of the market leaders in automotive standard, special and charging cables," Kamper said.

The unit operates 10 production locations across seven countries and employs 3,300 people.

It generated sales of $1.45 billion in the 2021 fiscal year and is valued at around $568 million, Leoni added.

"BG AM's portfolio, markets and technological know-how ideally complement our strengths," Stark Corp. Chairman Chanin Yensudchai, said in a statement. The acquisition, he added, will "optimally position" Stark to play a strong role in the international automotive cable business.

In 2019, Leoni announced the decision to streamline its structure with a plan to divest its Wire & Cable Solutions business. The German cable specialist intends to focus more on its other core business Wiring Systems Division, which specializes in energy and data systems.

Among other products, the automotive cables unit supplies TPE-based and elastomeric cables to car manufacturers.