Lorom announce strategic withdrawal from Chinese Automotive.
TPE – Taiwan – Lorom Industries, a technological leader in the design and manufacture of high-quality cable harnesses & assemblies today reported a strategical withdrawal from tier 1 automotive production.
The Chinese automotive (tier 1) division of Lorom, has received significant resource during its 7 years in operation and has been unable to demonstrate a positive return on investment during that time, claims the company president Thomas Yuan. “Despite all efforts to continue our activity, the difficult decision has been made to strategically withdraw from this business which will more importantly allow additional resource to be directed to the more sustainable and profitable areas of our operation. We will continue to support certain niche areas of the operation that demonstrate potential but the business as it stood was untenable.
The remaining automotive (tier 1) operation will be re-located to the Beijing & Chongqing facilities allowing better access to our strategic customer base.
” The Tier 2 automotive business, largely concentrated in Europe & the US is a strategic part of our operation and vital to the growth of the organisation this will remain unaffected by this decision.