CUAUHTEMOC, Mexico — Leoni AG is investing $25 million in a new expansion project to increase automotive cable production capacity at its manufacturing site in Cuauhtemoc.
The 75,300-sq.-ft. expansion will mainly focus on the production of EV charging cables and Hivocar high-voltage cables for vehicles with alternative drive, the German automotive supplier said in a news release. The cables use PVC and cross linked polyethylene, depending on the specific requirements of the cable.
With the option for a further 32,300-sq.-ft. extension, the new unit is scheduled to start production in the first quarter of 2020. Initial samples are to be made as early as the end of December.
The facility will create 100 jobs with this expansion, bringing total employment to 890.
"We look forward to extending our product range. We have continually expanded our facility ever since it was established in 1998," Everardo Avila, managing director of Leoni WCS Mexico, said in a statement.
The investment is aimed at supporting the growing electromobility trend in North America, as all the major carmakers have announced plans to further increase their product offering in the region.
Stating that the EV market share in the US is expected to exceed 15 percent by 2025, Leoni said it intended to "be prepared with greater capacity for the growing and changing market demands."
With production in proximity to the customer, Leoni said it will be able to locally and flexibly supply products for electromobility.
Leoni supplies a large product portfolio for electric cars and plug-in hybrids, including AC and DC charging cables for various charging modes as well as other solutions for fast charging.
The cables are made for both of the voltage levels possible in the US: 300V AC, EVJE cables and 600V/1.000V DC, EVE cables for fast charging.
Leoni will also offer Hivocar high-voltage cables for wiring the components and the powertrain of electric vehicles.
Hivocar cables are available in single and multi-core variants with various conductor and insulation materials.
The facility will initially make cables for temperatures up to 105°C and 125°C and will add products with temperature ranges of up to 150°C and irradiation crosslinked cables for up to 180°C at a later stage.
The site currently manufactures single-core cables, multi-core Adascar cables and Dacar data cables.
The plant is part of Leoni's AG Wire and Cable Systems business, which the company aims to either sell off or list on the stock market. The Leoni business supplies TPE-based and elatomeric cables to the automotive sector, among other products.