March 22 (SeeNews) - Japanese electric wire and optical fiber cables manufacturer Sumitomo Electric Industries will transfer the production of automotive wire harnesses to Romania and Morocco from Ukraine following Russia's invasion, Japanese media reported.
Sumitomo will add production lines at the Romanian and Moroccan plants, after suspending operations at its factory in western Ukraine at the end of last month, Japanese financial newspaper Nikkei reported on Monday.
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The cost of transferring production is estimated at more than 10 billion yen ($84 million/75 million euro), and client automaker Volkswagen may cover part of the expense, the newspaper added.
Sumitomo Electric was founded in 1897 and operates in five business fields: Automotive, Information and Communications, Electronics, Environment and Energy, and Industrial materials and is developing in two others: Life Sciences and Materials & Resources. It has more than 400 subsidiaries and over 280,000 employees in more than 30 countries.
In Romania, the company has factories in Caransebes, Drobeta Turnu Severin and Targu Jiu, according to its website.
(1 Japanese yen=0.0076 euro)