Sumitomo unit plans to open plant in Spain, close 1 of its 2 assembly plants in Bulgaria

SEBN Expands European Footprint with New Spain Plant

Sumitomo Electric Bordnetze (SEBN) announced plans to open a new manufacturing plant in Cuenca, Spain, while restructuring its operations in Bulgaria. The Spain facility will focus on producing high-voltage wiring harnesses for Volkswagen Groupโ€™s next-generation electric vehicles.

SEBNโ€”a subsidiary of Sumitomo Electric Industries and Sumitomo Wiring Systemsโ€”expects the Cuenca plant to begin full operations by late 2025. When fully staffed, it will employ around 350 workers, helping strengthen SEBNโ€™s global production network.

Strengthening Innovation for Electric Mobility

This new facility represents SEBNโ€™s first production site in Spain and the companyโ€™s 23rd plant worldwide. SEBN already operates a customer service center in Pamplona (since 2001) and a development center in Martorell (since 2012). Together, these operations form a vital hub supporting Volkswagen and other European automotive partners in the electric mobility sector.

Founded in 1986 as Volkswagen Bordnetze GmbH in Berlin, Germany, SEBN began by producing wiring harnesses for VW Polo and Golf models. Since becoming part of Sumitomo Electric Industries in 2006, the company has expanded into one of the largest wiring harness manufacturers in the world, with 41 sites across 13 countries.

SEBN to Close Bulgariaโ€™s Mezdra Plant and Reduce Karnobat Operations

As part of its restructuring strategy, SEBN will close its Mezdra plant in Bulgaria due to increasing competition and rising labor costs. The site, which opened in 2008, currently employs about 950 people.

The company also plans to reduce capacity at its second Bulgarian plant in Karnobat, which employs around 1,000 workers. Approximately 100 positions will be cut as production shifts to Moldova and Romania.

While these changes are challenging, SEBN emphasizes that the restructuring aims to strengthen supply efficiency and ensure long-term competitiveness in the growing electric vehicle market.

Balancing Growth and Operational Efficiency

By expanding in Spain and balancing production in Bulgaria, SEBN continues to align its operations with global automotive trends and electrification goals. The strategic shift allows the company to serve major clients like Volkswagen Group more effectively while optimizing global resources for future growth.

Mark Marselli
Author: Mark Marselli

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