Leoni selling automotive cables business to Thai manufacturer

Nuremberg, Germany – Leoni AG has taken a major step towards 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 & cables to various industries.

In a statement 23 May, the German automotive supplier said the move was in line with its decision to narrow focus on its wiring systems business.

According to Leoni CEO Aldo Kamper, the sold 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.

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

It generated sales of €1.3 billion in the 2021 fiscal year and is valued at €560 million, Leoni added.

“BG AM’s portfolio, markets and technological know-how ideally complement our strengths,” said Chanin Yensudchai, chairman of Stark Corp.

The acquisition, he said, 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 its Wire & Cable Solutions (WCS) business.

The German cables specialist intends to focus more on its other core business Wiring Systems Division (WSD) which specialises in energy and data systems.

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