Magna, Chinese concern to operate joint venture plant in Hangzhou, China

SHANGHAI – Magna International Inc. (TSX:MG) says its Magna Exteriors operating unit has formed a joint 50-50 venture with Chongquing Guangneng Rongneng Trim Co. Ltd. to supply the growing automotive market in China.

Magna Guangneng Automotive Trim System Co. Ltd., will assemble and sequence front-end modules at a plant in Hangzhou, China.

Financial terms of the deal were not disclosed.

“Magna Exteriors recognizes Chongquing’s strong presence in the China supply base and, combined with our expertise, we anticipate a successful and collaborative team approach to support our customers,” Joe Pittel, global president Magna Exteriors, Interiors and Seating, said in a release.

“Through this new strategic partnership with Chongquing and in recognition of the growing China market, we are continuing to expand our presence in the region.”

Magna International, based in Aurora, Ont., is a leading global automotive supplier employing 125,000 people at 316 manufacturing operations and 84 product development, engineering and sales centres in 29 countries.