Leoni: We are closing the factory in Malosiste by the end of the year

The German company Leoni announced today that it would close the factory in Malosiste by the end of 2025 because it was recording loses and that around 1,900 job positions would be gradually be cut and that severance payments would be paid to the workers.

– Due to a lack of a long-term, strategically and financially sustainable perspective, Leoni has made the decision to first reduce the production in the coming months, and then stop the production at the factory in Malosiste by the end of 2025 – the company says in a press release.

It is pointed out that the main reason for the decision is that the factory in Malosiste, which opened 11 years ago, operates with considerable losses, and the situation is made additionally difficult by the decline of the European automotive industry, which has a negative impact on the total financial result of Leoni Group.

– However, Leoni Group did not make the decision to close the location easily. The company and the employees have taken various initiatives to stabilize the performance, such as improving the efficiency and determining the real capacity of the factory. Unfortunately, these efforts have not produced results and there is no longer a perspective for a sustainable continuation of the production. The competitiveness of the factory in Malosiste is too low to be able to attract new projects – said the company, which announced the decision on the closing of the factory to the workers today.

Leoni Group, which operates in 23 countries, produces cable systems for the European automotive industry. In other locations in Serbia - in Prokuplje, Nis and Kraljevo, the company is also facing an increase of costs, but those three factories, as announced, are to continue working.

Leoni Wiring System Southeast d.o.o. Prokuplje

Leoni in Malošište

factory closing