Magna International Inc. and Chongqing Xingqiaorui have agreed to form a strategic joint venture in China. Under the terms of the agreement, Cosma International, Magna's body and chassis operating unit, will hold a 53% stake in the JV, while Xingqiaorui will hold the remaining 47%. The transaction is expected to close in late 2015 or early 2016, subject to regulatory approvals.
Xingqiaorui, a Tier 1 supplier of automotive body-in-white components and a key supplier to Changan Ford, brings its three China manufacturing facilities (two in Chongqing and one in Hangzhou) to the JV, with Magna adding its new Chongqing manufacturing facility as a part of the joint venture.
This strategic JV will leverage Magna's world-class manufacturing technologies to help support Xingqiaorui's new and existing customers and will enable Magna to expand its presence and product offerings within the China market with its strong track record and successful long-term customer relationships.
"Magna recognizes Xingqiaorui's strong presence and reputation in the China market, and combined with our manufacturing expertise, we anticipate a successful and collaborative team approach to support and grow with our current and future customers," said John Farrell , President of Cosma International.
The board of Xingqiaorui stated, "The collaboration and synergies gained through this joint venture is a great opportunity for both companies. It allows us to provide better products and service to customers and grow our business with a global company like Magna, as well as strengthen our company, employee base and customers."
About Magna International
We are a leading global automotive supplier with 316 manufacturing operations and 87 product development, engineering and sales centres in 29 countries. We have approximately 133,000 employees focused on delivering superior value to our customers through innovative products, processes and World Class Manufacturing. Our product capabilities include producing body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit our website at www.magna.com.