Sumitomo Electric to Reshuffle Wire Harness Plants for USA, Europe

Sumitomo Electric Industries reshuffles offshore plants of automotive wiring harness when automakers restructure the production sites in North America. The firm started study for potential job cut at plants in USA, Mexico, Philippines, China and Vietnam. The firm also transfers some production to North Africa and Ukraine to improve the cost structure. The firm supplies 60% of automotive wiring harness for North America from plants in USA and Mexico and supplies 40% from Asian plants. The firm reduces the manpower at the plants for supply for North America to meet decreasing demand when Japanese automakers’ transplants and major US automakers reduce the output in North America. The firm also transfers some production from plants in Eastern Europe to North Africa and Ukraine when the firm cannot secure low cost workers in Eastern Europe. The firm now reviews the market and efficient production system though the firm already has a production subsidiary in Ukraine and 3 subsidiaries in Morocco. The president Masayoshi Matsumoto said the demand of automotive wiring harness is still firm in China, India and Brazil and the firm tries to increase the output in developing countries while the firm tries to adjust the production for USA and Europe.