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Automobiles

Sumitomo Electric to start auto parts production outside Ukraine

Russian invasion brings newest shock to automotive supply chains in Europe

Electric ID.5 cars roll off the assembly line at a Volkswagen factory in Germany on Jan. 27.   © Reuters

OSAKA/FRANKFURT, Germany -- Sumitomo Electric Industries will add production lines at its Romanian and Moroccan plants, having suspended operations at its factory in western Ukraine at the end of last month following Russia's invasion.

Given a lack of prospects for resuming production and the geopolitical risks even if the fighting settles down, Sumitomo Electric decided to overhaul its supply chain instead of taking a stopgap measure.

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