Automotive sector supplier Leoni to close plant in Romania’s Marghita, reorganize Arad and Beiuș factories

Leoni, a manufacturer of automotive wiring systems and cable components, announced it will close its plant in Marghita, in Bihor county, in the first half of 2026. The decision, which will impact approximately 190 employees, was taken because of the lack of new projects to ensure the continuity of operations at the site, the company said.

Additionally, Leoni’s Arad and Beiuș plants will undergo a reorganization process in 2026. This will entail a workforce reduction needed “to align resources with current customer requirements.”

The number of employees affected at Leoni Wiring Systems Arad, which includes the Arad, Beiuș, and Marghita satellites, will be up to a maximum of 700.

The decision to reorganize came amid “an extremely challenging market context,” which led to a significant cut in order volumes and increasing cost pressures, Leoni said. The company will offer compensation packages, assistance with job placement, and payment of all due salaries and benefits.

The maximum number communicated to the authorities during the collective redundancy procedure is not final, Leoni said, adding it will work to attract new projects to ensure the continuity of operations and minimize the number of affected employees.

All other Leoni plants in the country will continue to operate normally, it said.

Leoni opened its Wiring Systems Division factory in Arad in 1999. In 2002, the factory in Bistrița opened, followed by the one in Pitești three years later. The company expanded with satellite factories in Beiuș, Marghita, and Bumbești-Jiu. In 2016, it established its Leoni Shared Service Center (SSC) in Cluj-Napoca, which oversees 17 distinct corporate functions.

Earlier this year, Chinese electronic components manufacturer Luxshare acquired a 50.1% stake in Leoni AG.

(Photo source: Facebook/Leoni Romania)