SE Bordnettse-Ukraine expands production of cables for Volkswagen

The company "Sumitomo Electric Bordnettse — Ukraine" (Ternopil region)., Manufacturer of cable and wire products for a leading European car manufacturer Concern Volkswagen, in the expansion of production has created a division in Chernivtsi on the basis of the factory "Quartz". 

According to the agency "Interfax-Ukraine" Head of Alexander Shlamp in Chernivtsi moved one step (less complex) manufactured cables, while in Ternopil presently being imported new equipment for the production of more complex models.

"That is part of the job of Ternopil translated in Chernivtsi, where it will be one of the stages of production of wiring, as part of the processing of raw material," — he explained.

A.Shlamp said that currently work for the company has recruited 170 people who undergo training, but before the end of the year is planned to increase the number to 500, and the following year — up to 1 million

"Plans for the staff, we are huge and difficult to implement them. Chernivtsi But for this important project, and city officials are all contributing. And in Ukraine, I do not recall a 2008 big new foreign investment projects that would have used the area of customer-owned processing raw materials "- said A.Shlamp.

He did not name the parent company’s investment in the creation of the new unit and the planned production volumes as new production is banking outlets and all investments and financial indicators will be taken into account in the Ternopil region.

According A.Shlampa in the future may develop the project, but so far these plans have not been disclosed.

As reported, in 2007 at the plant "Quartz" another unit of Japanese companies Sumitomo — SE Wiring systems (SEWS) has launched the first phase of the project to establish the production of cables for cars Nissan, created in Ukraine Ltd. "SEWS Ukraine."

The project in 2008 has already been created about 90 jobs, spent about EUR1 billion of planned investments EUR5-7000000, in particular, imported equipment of one of the lines. In the future, the planned construction of the plant.

However, due to the global financial crisis leading to a sharp reduction in demand for vehicles and reduce their production, SEWS has decided to shut down production in Ukraine.

"SE Bordnettse-Ukraine" in the Ternopil region established in 2006 by the Japanese Sumitomo Electric Bordnetze — the world’s leading cable manufacturer.

In 2011, the company increased net income from sales by 47.1% by 2010 — up to 273.11 million USD, net profit rose 25.2% to 47.45 million USD.

The best results the company achieved sales in 2009 (net income of about 445 million USD) when the concern Volkswagen, despite the global crisis, has increased worldwide sales by 0.6% compared to 2008 — to 6.23 million vehicles.

In January-September 2012, "SE Bordnettse-Ukraine" has received USD 162.7 million in net income, but about 6.5 million USD loss.

Sumitomo Group brings together more than 900 companies operating in many industries (metallurgy, chemistry, construction, oil and energy, pharmaceuticals, electrical engineering, trade), and providing a variety of services, including banking and insurance.

The group Sumitomo, in addition to Sumitomo Electric, includes such giants of Japanese industry as NEC, Sumitomo Heavy Industries, Sumitomo Metals, Mitsui Sumitomo Insurance, Sumitomo Mitsui Banking Corporation, Sumitomo Chemical, and others.

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