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    Skoda Partially Relocates Cable Production to Morocco Amid Ukraine War

    The Ukraine war has led many automotive operators to relocate part of their operations to other countries due to supply chain disruptions.

    02 Jun 2022

    Rabat - Czechian car manufacturer Skoda Auto on Wednesday announced its plans to increase cable harness production in the Moroccan cities of Kenitra and Tangier to fill the production gap caused by the war in Ukraine.

    “We have been working very closely with our partners over the past few weeks to minimize the impact of the war in Ukraine on the supply of cable harnesses,” the company said in a press release.

    Faced with supply bottlenecks, Skoda returned to Morocco, Romania, and the Czech while remaining “fully committed” to its Ukrainian partners. The company has notably increased its cable harness production in its Ukrainian plant in Zhytomyr despite the ongoing war.

    “The arrangements will allow for current production volumes to be doubled if necessary,” the company’s statement added.

    The war in Ukraine has halted the production of the all-electric model ENYAQ iV for eight weeks.
    To resume operations, the company decided to increase production capacity in the Kenitra plant with the support of the Kromberg & Schubert company, in addition to expanding operations in Tangier starting from September to produce cable harnesses for ENYAQ iV, OCTAVIA, and SUPERB models.

    Along with increasing production output in Morocco, Skoda managed, within the first five weeks of the war, to relocate part of its cable harness production from Ukraine to its headquarters in Mlada Boleslav, Czechia.

    Since April, Skoda’s operations have “gradually ramped up” with the support of PEKM Kabeltechnik, which “built the necessary production equipment in assembly halls.”

    Skoda also relocated 35 female staff from its Lviv plant in Ukraine to train its employees in the Czech Republic on cable harness production.

    The lingering impact of the Ukraine war extends beyond the automotive sector to burden the semiconductor production, energy supply, and food sectors.

    As Ukraine supplies roughly 50% of the neon gas used in manufacturing microchips, the current shortage impacts a spectrum of industrial activities from producing cars to smartwatches.

    While being subject to the supply chain disruptions due to the COVID-19 and war in Ukraine, Morocco’s modern automotive infrastructure has provided a cost-effective destination and trained human capital for companies planning to relocate their factories or parts of their operations.

    moroccoworldnews

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