Magna forms chassis components joint venture in Chongqing
Magna International Inc. and Chinese supplier Chongqing Xingqiaorui Automotive have agreed to establish a joint venture to expand production of chassis components in China.
Cosma International, Magna's body and chassis operation, will own a 53 percent stake in the venture while Xingqiaorui will hold the remaining 47 percent.
Under an agreement signed this month, the joint venture will include Xingqiaorui's three factories. Two are in the southwest China municipality of Chongqing, and one is in the east China city of Hangzhou. The partnership also will run Magna's existing plant in Chongqing.
Magna expects the deal, which has yet to be approved by regulatory bodies in China, to close late this year or early in 2016.
Xingqiaorui, headquartered in Chongqing, is a Tier 1 supplier of body-in-white components. Key customers include Changan Ford Automobile Co., Ford Motor Co.'s joint venture with Chongqing Changan Automobile Co.
Under an agreement signed this month, the joint venture will include Xingqiaorui's three factories. Two are in the southwest China municipality of Chongqing, and one is in the east China city of Hangzhou. The partnership also will run Magna's existing plant in Chongqing.
Magna expects the deal, which has yet to be approved by regulatory bodies in China, to close late this year or early in 2016.
Xingqiaorui, headquartered in Chongqing, is a Tier 1 supplier of body-in-white components. Key customers include Changan Ford Automobile Co., Ford Motor Co.'s joint venture with Chongqing Changan Automobile Co.