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Magna builds composites business and new seating systems plant

It’s been a busy week for Canadian auto parts manufacturer Magna International Inc.


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July 27, 2009 by Canadian Plastics

It’s been a busy week for Canadian auto parts manufacturer Magna International Inc.

 

The Aurora, Ont.-based company has announced plans to phase out the Decoma name while keeping Decoma’s specialization in auto composites work. Also, Magna plans to build a seating systems plant in Highland Park, Mich., on property once occupied by the Chrysler Corp. headquarters.

 

Regarding the Decoma decision, in a press release Magna said that it intends to build on auto composites specialization through its acquisition of certain parts of Meridian Automotive Systems Inc.

 

Magna has created the Magna Composites unit within its exteriors and interiors group to take the range of thermoplastic and thermoset composite processes now under its control and develop that business for a variety of auto parts and end users.

 

Magna completed its acquisition of seven Meridian plants in June, including a sheet molding compound sheet production facility in Grabill, Ind., and it is leasing an SMC sheet production line in Saltillo, Mexico.

 

According to news reports, Magna expects to expand production in Mexico even further by bringing a wider range of customers and products to the Saltillo plant.

 

Regarding its new systems plant, subsidiary Magna Seating plans to launch production at the Highland Park facility in May 2010, and will supply full seating systems to General Motors and Chrysler Group, according to a company statement. Magna said it expects to create 400 full-time jobs at the plant.

 

The plant will handle new business from GM and Chrysler.

 

According to the statement, the project has qualified for a Michigan state tax credit valued at US$4.5 million over seven years.