CRU Wire & Cable Report: Cable producers monitor Ukraine-Russia situation

Ukraine Cable Industry War Impact on Producers

The Ukraine cable industry war impact creates a tense and uncertain environment for major manufacturers such as Leoni (leoni.com), Nexans (nexans.com), and TFKable (tfkable.com), all of which operate plants in the country. This insight reviews how these producers respond to the crisis and what roles Russia and Ukraine play in the broader cable market. A further market update will follow next week.

At the time of reporting, Nexans continues to run two of its three automotive wiring harness plants in Ukraine. The facilities in Peremyschljany and Zolochiv still operate, while the plant in Brody remains temporarily closed. Together, the three units employ 2,771 people. Nexans keeps in regular contact with customers and closely tracks developments so it can adjust operations and limit disruption. The company also stresses that employee safety remains its top priority and that it adapts protection measures at each site as conditions change.

Germany‑based Leoni reports a more extensive interruption. The company has stopped wiring harness production at both of its Ukrainian plants, which together employ about 7,000 people. Leoni’s facilities in Stryji and Kolomyja, located in the southwest near the EU border, suspended operations immediately after combat began. The company sent employees home and plans to keep production on hold until it can better evaluate the situation. Leoni set up a dedicated task force to monitor the conflict, assess impacts on its sites, and coordinate closely with customers and suppliers.

Labor‑intensive wiring harness production, which relies heavily on LVE cable, represents one of the main activities for cable manufacturers in Ukraine. LVE cable accounts for about 48% of total insulated metallic wire and cable output in the country, underscoring how strongly the Ukraine cable industry war impact affects European automotive and harness supply chains.

Sanctions and Ukraine Cable Industry War Impact on Trade

International sanctions on Russia add another layer to the Ukraine cable industry war impact. Nexans notes that it monitors sanctions very closely so it can adapt and protect its supply chain. The company points out that Russia and CIS markets represent less than 0.5% of Nexans Group sales, which limits direct revenue exposure but still requires active risk management.

Market data show that Russian wire and cable production consists mainly of power cables (71%), with LVE cables making up about 26%. Russia’s influence on the broader cable market remains modest: it holds roughly a 2% share of total European cable exports and around 4% of East European exports. Over the last three years, Kazakhstan and Belarus served as Russia’s primary export destinations, together accounting for about 61.2% of Russian cable exports. Meanwhile, China and Belarus supplied roughly 63.1% of Russia’s cable imports in 2021.

The future effect of further escalation on Ukraine’s cable trade remains unclear. Poland stands out as a key trade partner for Ukraine on both the import and export side. In 2021, most Ukrainian cable exports to Poland consisted of wiring harnesses (72.5%) and LVE cables (25.5%). On the import side, LVE cable dominated, accounting for about 90.1% of cable imports from Poland. These figures highlight how the Ukraine cable industry war impact reaches into neighboring European markets and regional supply chains.

Analysts at CRU Group continue to track developments and plan to provide additional updates over the coming weeks. For more detailed data and analysis, readers can visit the CRU website at https://www.crugroup.com/.

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