Magna expands in China

Magna Exteriors and Interiors, an operating unit of Aurora, Ont.-based auto parts maker Magna International Inc., is forming a joint venture to buy an existing Chinese injection molding and painting facility located in Wuhu, a city in the Anhui province of southeastern China.

The three-party joint venture, called MCC Wuhu Exteriors, consists of Magna Exteriors and Interiors (51 per cent owner), CAIP (Changshu Automotive Trim Co., 34 per cent owner) and Chery Tech (15 per cent owner).

The financial terms of the deal have not been disclosed.

The 300,000-square-foot manufacturing plant, which recorded revenue of approximately US$43 million in 2010, employs about 600 people and supplies its primary customer Chery Auto – a sister company to Chery Tech – with front and rear fascias.

“Consistent with our strategy to pursue growth in emerging markets, this opens the door for our exteriors and fascia business in China,” said Bob Brownlee, president of Magna Exteriors and Interiors in North America and Asia. “Having established a presence in China with our interior components and systems during the past several years, we now have a foundation from which we can begin a growth phase for our exteriors business in the region as well.”