Magna forms JV to buy plastic fascia plant in Wuhu
Magna International Inc. says it has formed a joint venture to buy an injection molding plant that makes front and rear fascias for Chery Automobile Co.
Magna holds a 51 percent stake in the three-party joint venture, MCC Wuhu Exteriors, which will be in the city of Wuhu in eastern China's Anhui Province. Other joint venture partners are Changshu Automotive Trim Co., which holds a 34 percent stake, and Chery Tech, which holds the remaining 15 percent.
Last year, the 28,000-square-meter factory generated revenue of $43 million (277 million yuan). It employs 600 workers.
After a relatively slow start in China, Magna has steadily expanded. In May, the Canadian supplier formed a joint venture with Guangzhou Automobile Group Component Co. to build chassis components in Changsha.
Magna has 15 Chinese factories and seven engineering centers that generate annual sales of 3.9 billion yuan ($605 million).
Magna, of Aurora, Ontario, ranks No. 5 on the Automotive News list of the top 100 global suppliers with worldwide parts sales to automakers of $23.6 billion in 2010.
