As a part of its plan to nearly double its local sales within the next two years, Magna International – a global player among auto parts suppliers – has announced it formed a joint venture to tap into the growing Chinese market.
As local authorities only allow foreign companies to operate through joint ventures with local partners, Magna International allied with Chongquing Guangneng Rongneng Trim Co Ltd. and under their agreement they will assemble front-end modules in a new manufacturing facility in Hangzhou, China.
“Magna Exteriors recognizes Chongquing’s strong presence in the China supply base, and, combined with our expertise, we anticipate a successful and collaborative team approach to support our customers,” said Joe Pittel, Global President Magna Exteriors, Interiors and Seating. “Through this new strategic partnership with Chongquing, and in recognition of the growing China market, we are continuing to expand our presence in the region.”
After already constructing a number of new plants in the past two years, Magna also announced it has now plans to expand its manufacturing foot print with six new manufacturing plants in China by the end of 2016.