Germany's Leoni To Close Plant S Romania, 200 Jobs Cut

Thus, over 200 employees will lose their jobs.

"The process to close down the plant is seen ending in June 2009. By then, production, which already plummeted in December and ceased at yearend, would not be resumed. Once with the factory’s closedown, around 230 employees would be sent home according to the collective layoff plan," the company said Tuesday.

The employees with Leoni plant in Mioveni will not be transferred to any of the group's plants.

Also, Leoni's other plant in Pitesti will adjust the production to the low demand by temporarily cutting staff.

Leoni group is the largest European wiring systems maker with a 24% market share. Leoni ranks 4th worldwide, with a 9% market share.

In Romania, Leoni has four production plants in Bistrita, Mioveni, Arad, and Pitesti.

Dacia representatives said Tuesday the company has financially helped its spare parts providers by making advance payments and pre-ordering products but it could no longer continue, on having to protect its own financial status.

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