STOLBERG, Germany—Leoni A.G. is studying the future of its cables production plant at Stolberg, in western Germany, as part of a streamlining process currently underway within its Wire and Cable Systems business.
In its third quarter results on Nov. 11, the German supplier said it had notified employee representatives as well as staff at Leoni Kerpen GmbH of "the intention to cease business activity" at the plant.
The site, which employs more than 400 people, develops and manufactures cabling systems for IT products, as well as the automotive and oil and gas industries.
In its third quarter presentation, Leoni said it will close down oil and gas activities at the Stolberg site, while reviewing possibilities for the continuation of other operations at the facility under new ownership.
The German cables and wiring specialist is in the process of separating its WCS business, which is focused on cable solutions, from its other core business—Wiring Systems Division, which specializes in energy and data systems.
Speaking during a Nov. 11 earnings call Aldo Kamper, chairman, president and CEO, said discontinuing operations at Leoni Kerpen was part of the separation process and "a good example that we are making progress, streamlining portfolio of WCS."
According to the company boss, the organizational and legal process to carve out sub-units from the division is expected to be completed in early 2021.
"We've received first signals of interest in acquiring some businesses. However, the current M&A environment remains challenging," he said.
Leoni WCS supplies TPE-based and elastomeric cables to various industries.