Andrada Verdes, Leoni: We are a centre of excellence in the production of wiring harnesses and components for engine vehicles

LEONI Romania is one of the largest exporters in Romania and in the top 10 national component manufacturers. The company is the largest employer in Bistrița-Năsăud and among the largest employers in Romania. Recently, it opened a new factory in Beius, dedicated to the production of classic car wiring systems.

The investment in the factory is EUR 17.5 million and represents the costs of rehabilitating a building that has been reintroduced into the production circuit and the costs of the latest generation equipment used. LEONI renovated and rehabilitated the space to international standards. Equally important is the investment made in the training of people – production operators, technicians and engineers – investment that will make the workforce in the region better trained and more integrated in the current labor market landscape. Business Review talked to Andrada Verdes, Country Manger LEONI Wiring Systems Romania, to find out more about the company and the activity of the group in our country.

Business Review: The Leoni Group has been present in Romania since 2000, and since then it has opened several factories and even a centre for the HR department. Why did you choose Romania for development, and how much money has been invested in Romania so far?

Andrada Verdes: Indeed, the first LEONI factory was opened in 1999, and today we own 10 factories in six counties: Arad, Argeș, Bihor, Bistrița-Năsăud, Gorj and Mureș. Cumulatively, we have 180,000 square meters of production space, and nationally, we are among the top exporters, the largest employer in Bistrita-Nasaud and among the largest employers in Romania, with over 12,000 active employees.

We are a centre of excellence in the production of wiring harnesses and components for electric, hybrid, hydrogen and combustion engine vehicles. We cover the whole product range, from luxury cars to trucks and agricultural machinery. We have over 23,500 different products in our portfolio and more than 2,900 local suppliers (almost 70% of the total). In addition, our Romanian teams participate in international projects and are recognised for their know-how in developing high-voltage wiring systems (for electric and hybrid cars).

In 2022, the consolidated turnover of all LEONI Romania entities was approximately EUR 640 million. The contribution to the state budget, which is reflected by taxes paid in 2022 alone, is over 70 million euros.

You inaugurated a new factory now, the one in Beiuș. Why was a new factory in Romania needed and how will it participate in Leoni’s operations in Romania?

The Beiuș plant was created out of the need to cover new or future LEONI projects in Romania, with production destined for several commercial vehicle manufacturers. The newly opened plant is the second plant in Beiuș and is very relevant for the local community, through its impact on the local economy. At full capacity, we will create up to 1200 new jobs.

LEONI has brought back into use a production space that it renovated and refurbished to international standards. Compared to the initial production capacity in Beiuș (the old factory), thanks to the new investment of 17.5 million euro, we will increase the production capacity in Beiuș, as the new factory is three times bigger than the old one.

How is the new factory different from the existing ones, and what does it bring to Leoni production?

In the new factory in Beiuș, we use a state-of-the-art, integrated computer system used to monitor the production process, as well as equipment unique in Romania in the production of wiring harnesses for the automotive industry.

In terms of the ESG principles, which the Leoni group already applies, how are they implemented in the new factory in Beiuș? But at the group level in Romania?

With a significant presence in six counties through manufacturing operations, LEONI fully understands the responsibility of its socio-economic footprint and makes it a priority to support its communities through projects dedicated to youth and adolescent development, inclusion and sustainability.

For example, last month in Bistrita-Năsăud we partnered with the National Association of the Deaf, through which we hired people with hearing impairments. In terms of youth projects, we partner with universities and vocational schools and prepare young people for future careers in the automotive industry.

In May, we signed the Romanian Diversity Charter and committed to fostering an inclusive environment that gives the right workplace configuration so that hiring, promotion and compensation practices are fair and impartial.

What are the trends in the automotive industry at the global and European level and what impact do they have in Romania?

Romania has good potential in the area of automotive production, not only of cars but also of components. We need a national strategy to keep existing production in the country or bring in new projects. Ensuring easy access to investment finance makes a difference and turns Romania into a favourable environment for development at a faster pace. The quality of the specialists, the teams we have built here and the excellent results so far help us a lot in this process.

Sustainability is a strategic priority for both us and our customers, which is reflected both in the components and cars we produce and the way we make them. We have sustainability investments planned for this year and next. Our global ReWire strategy integrates solutions to identified environmental challenges by clear standards for material suppliers, environmental standards applied in over 80% of our locations, increasing the number of recycled materials used year on year, increasing production and use of green energy, improving workplace safety in all our locations, and awareness and engagement activities in local communities.

Alongside sustainability, community involvement also plays a strategic role for us. We invest in LEONI people through training programmes and seek to provide them with relevant experiences for their professional development. That’s why we have examples of colleagues who started their careers as production operators and over time became managers leading very large teams. We have great people with us and this is the solid foundation of our future.

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