German automotive wiring systems manufacturer Leoni, majority owned by China's Luxshare, will close one of its four factories in Serbia, in Malosiste in southeastern town of Doljevac, by the end of the year, resulting in the loss of around 1,900 jobs, its Serbian unit said.
The main reason for the decision is that the Malosiste plant has been operating at a significant loss, making it unprofitable for Leoni to continue its predominantly manual production there, Leoni Wiring Systems Southeast (Leoni Srbija) said in a press release on Thursday, adding that the situation is further worsened by the downturn in the European automotive industry.
In other locations in Serbia - in Prokuplje, Nis, and Kraljevo, the company also faces rising costs, it said. "Nevertheless, these three factories continue to work on their own projects with a clear goal of business improvement," the statement said.
Leoni opened its Malosiste factory in 2014, following an investment of 21 million euro ($24.7 million). The German company, operating in Serbia since 2009, employs around 10,000 people in the country and is one of Serbia’s largest industrial employers, according to Leoni Srbija.
The subsidiary exports its entire production and was among the five largest Serbian exporters in 2023.
In 2024, Leoni Srbija posted operating revenue of 44.9 billion dinars ($451 million/ 383 million euro) and a net profit of 1.1 billion dinars, compared with operating revenue of 48.4 billion dinars and net profit of 406.4 million dinars in the prior year, its annual financial statement showed.
Elsewhere in the region, Leoni operates nine factories in Romania. Last year, it closed its sole facility in Bulgaria.
(SeeNews, July 4, 2025)
