JV to supply body and chassis components to
Chinese market
SHANGHAI, China, May 4, 2015 /CNW/ - Magna International Inc.
and Chongqing Xingqiaorui ("Xingqiaorui") have agreed to form a
strategic joint venture in China.
Under the terms of the agreement, Cosma International, Magna's body
and chassis operating unit, will hold a 53% stake in the JV, while
Xingqiaorui will hold the remaining 47%. The transaction is
expected to close in late 2015 or early 2016, subject to regulatory
approvals.
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Xingqiaorui, a Tier 1 supplier of automotive body-in-white
components and a key supplier to Changan Ford, brings its three
China manufacturing facilities
(two in Chongqing and one in
Hangzhou) to the JV, with Magna
adding its new Chongqing
manufacturing facility as a part of the joint venture.
This strategic JV will leverage Magna's world-class
manufacturing technologies to help support Xingqiaorui's new and
existing customers and will enable Magna to expand its presence and
product offerings within the China
market with its strong track record and successful long-term
customer relationships.
"Magna recognizes Xingqiaorui's strong presence and reputation
in the China market, and combined
with our manufacturing expertise, we anticipate a successful and
collaborative team approach to support and grow with our current
and future customers," said John
Farrell, President of Cosma International.
The board of Xingqiaorui stated, "The collaboration and
synergies gained through this joint venture is a great opportunity
for both companies. It allows us to provide better products
and service to customers and grow our business with a global
company like Magna, as well as strengthen our company, employee
base and customers."
About Magna International
We are a leading global automotive supplier with 316
manufacturing operations and 87 product development, engineering
and sales centres in 29 countries. We have approximately 133,000
employees focused on delivering superior value to our customers
through innovative products, processes and World Class
Manufacturing. Our product capabilities include producing body,
chassis, interior, exterior, seating, powertrain, electronic,
vision, closure and roof systems and modules, as well as complete
vehicle engineering and contract manufacturing. Our common shares
trade on the Toronto Stock Exchange (MG) and the New York Stock
Exchange (MGA). For further information about Magna, visit our
website at www.magna.com.
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SOURCE Magna International Inc.