12:45 30.10.2013

Kromberg & Schubert to invest another EUR 11.5 mln in second phase of conductor cable plant in Lutsk

2 min read

Germany's Kromberg & Schubert, which owns Kromberg & Schubert Ukraine (Volyn region), has decided to invest another EUR 11.5 million in the construction of the second phase of the plant producing conductor cables for cars, Volyn Regional Administration said in a posting on its Web site.

"The German investor will create another 1,000 jobs in the region. Kromberg & Schubert Ukraine in Lutsk is expanding its capacities. Investment will reach EUR 11.5 million," the press service said, referring to Volyn Regional Administration Chairman Borys Klymchuk.

He said that the decision to build the second phase of the plant was made by the company's board of directors and owners of Kromberg & Schubert Ukraine LLC.

"Its owners were looking for a place for the future plant in other regions, although after consider all the pros and cons they decided to invest in the economy of our region. This shows that foreign business feel comfortable working in Volyn region," Klymchuk said.

The creation of additional production facilities with a gross area of 7,000 square meters on a land plot of 6.68 hectares is foreseen in the investment project entitled "Expansion of Production Line for BMW" being realized by Kromberg & Schubert Ukraine.

According to the report, at present, the number of employees at the existing plant amounts to 3,536, and the average wage is over UAH 3,000.

The press service also said that in 2012, the Ukrainian plant was declared the flagship plant among 27 plants of the company.

Kromberg & Schubert Ukraine was established in 2005. Since 2006 Kromberg & Schubert Ukraine has been producing conductor cables for passenger cars from materials imported on a tolling basis by Kromberg&Schubert in Volyn region. The production capacity of the plant is around 1,000 conductor cable sets per day. Main consumers are DaimlerChrysler and BMW.

The participants of the limited liability company as of December 2012 were Kromberg & Schubert Holding GmbH (Austria, 99.95%) and individual Andriy Shevchuk (0.05%).

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