NEW ALBANY, Ohio – Commercial Vehicle Group Inc. (CVGI), which supplies fully integrated system solutions for the global commercial vehicle market, is moving to a new facility in L’viv, Ukraine. The new plant will replace CVGI’s currently leased building in Kamyanets-Podilsky, Ukraine and will also be leased.
Capital expenses and costs for the move are anticipated to be in the range of approximately $1.2 to $1.4 million. The company expects the capital requirements to be substantially completed in the second half of 2012.
The new 86,211 square foot building will produce wire harnesses and other electrical distribution system products for both light vehicles and commercial vehicles such as heavy trucks and construction equipment. Pre-launch activities have already begun with a formal opening scheduled for October, at which time total employment is expected to be approximately 125. CVGI said existing orders should result in the employment of approximately 650 workers by the end of 2013 when all work is launched or transferred to the new building.
The new L’viv plant will produce wire harnesses for Webasto, Continental and CVG’s new Skoda Auto a.s. contract, which was announced in November 2010 and set to begin production in 2012. Skoda Auto, located in Mlada Boleslav, Czech Republic, is a member of the Volkswagen Group, the largest car manufacturer in Europe.
The Skoda contract calls for CVG to provide the carmaker with wire harnesses to be used in car doors, seats, bumpers and parking sensors for two new car lines. Currently, CVG is delivering similar products for the Skoda Yeti, an SUV, and the Superb B6. In addition to the manufacture of parts, CVG is also supplying Skoda with design activities, development and engineering services, drawings, prototyping, production samples and customer service assistance.
Kevin Frailey, president and general manager – electrical systems for CVG, said, "We are very pleased to announce our move to a new facility in an essential part of the world. Our new plant, which has space for growth, is located in an area that has a very stable and capable workforce. We believe it will keep CVG more competitive in the Euro Zone and help us pursue new business in a rapidly developing part of the world," Frailey continued.
"Specifically, this new factory puts us approximately 300 kilometers, or 186 miles, closer to our European customers. We expect that will result in better customer responsiveness and reduced freight costs. We also expect it will also help us accelerate lead times and inventory turnover," Frailey added.
