Canadian auto parts maker Magna International Inc. is expanding its already considerable footprint in China by forming a new 50/50 joint venture with Chongqing Hongli Zhixin Automotive Parts Manufacture Co.
The agreement will see the two firms collaborate on providing seating systems and seating components to Changan Ford as well as other customers within China.
“Hongli Zhixin, with their strong position in the Chinese seating market, represents a strategic partner for us in China” said Mike Bisson, president of Magna Seating, in a statement. “The combination of our global seating expertise and their knowledge of the Chinese market delivers a unique value proposition that ultimately positions both companies for future growth opportunities.”
The new joint venture will be headquartered in Chongqing. Aurora, Ont.-based Magna expects the partnership to strengthen its position in China by “providing additional regional knowledge of customer and market expectations, enhancing the competitiveness of its cost structure through vertical integration and facilitating faster response times.”
Magna already operates 24 manufacturing facilities and employs nearly 10,000 workers in China.