Japan’s Sumitomo Electric Bordnetze (SEBN) said that it will open a new plant in Spain and close its Mezdra plant in Bulgaria, while cutting back at a second plant in the country it has in Karnobat.

Per multiple media reports, earlier this year SEBN announced plans to build its first production site in Cuenca, Spain to make high-voltage wiring harnesses for electric cars for the Volkswagen Group. By the end of 2025, when operations are at capacity, it will have some 350 employees.

A subsidiary of Sumitomo Electric Industries and Sumitomo Wiring Systems, SEBN notes at its website that it is one of the world’s largest wiring harness system manufacturers, with a development and production network of 41 sites in 13 countries. While this will be SEBN’s first plant in Spain, and 23rd overall, the company has had a customer service center in Pamplona since 2001 and a development center in Martorell since 2012.

In other news, SEBN noted that it decided to close the Mezdra plant because of stiff competition and higher labor production costs in Bulgaria. The site, opened in 2008, employs around 950 people.
SEBN plans to maintain its second Bulgarian plant, in Karnobat, at reduced capacity. That plant, opened in 2006, currently has about 1,000 employees, and will see a reduction of about 100 positions. The company will move some production to its facilities in Moldova and Romania.

Founded as Volkswagen Bordnetze GmbH in 1986 in Berlin, Germany, the company’s initial production was wiring harnesses for the VW Polo and VW Golf vehicles. It became part of Sumitomo Electric Industries in 2006.