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10:12
SUMITOMO ELECTRIC DECIDES TO CLOSE CHERNIVTSI'S NISSAN CAR WIRING PRODUCTION FACILITY

Kyiv, July 31 (Interfax-Ukraine) – Japan's Sumitomo Electric Wiring systems (SEWS), one of Sumitomo's subdivisions, has decided to close as of September 2, 2009, a Chernivtsi-based facility for the production of wiring for Nissan cars, which was launched at the Kvartz plant in 2008.

The decision was taken by the Japanese company in connection with the falls on the car markets during the economic crisis, which triggered a sharp decrease in demand for cars and a reduction in wiring production, a well-informed source has told Interfax-Ukraine.

According to the source, since the beginning of the implementation of the wiring production project's first phase, about EUR 1 million out of the planned EUR 5-7 million worth of investment has been spent. In particular, the company has brought equipment for one of the production lines, and hired 80 employees, who will be dismissed in September due to the facility's closure.

"Since this spring, Sumitomo was expected to decide on the further implementation of the project, and the local authorities were doing their best to facilitate the project. However, the Japanese company decided to close the Chernivtsi facility," the source said.

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