Magna sets up new China facility

Canadian auto parts maker Magna International Inc. continues to expand in China with the construction of a new manufacturing facility in northern China’s Tianjin municipality.

Being built for the company’s Magna Powertrain unit, the $68 million, 13,500-square-meter facility will go into operation next year, manufacturing rear axle drives and power take-off units for Volkswagen and Audi models assembled in China.

According to Aurora, Ont.-based Magna, the plant’s annual production capacity will be 500,000 units.

Magna Powertrain established its first China operation in 2005. Since then Magna Powertrain has grown to three locations in China, including sales and engineering centres in Shanghai and Changzhou and a manufacturing facility in Changzhou.