Magna International Inc. and Chongqing Hongli Zhixin Automotive Parts Manufacture Co., Ltd. have announced the signing of a 50/50 joint-venture agreement to provide complete seating systems and seating components to Changan Ford and other customers in China.
Hongli Zhixin, a leading independent seating supplier in China with capabilities in foam, trim and structures, as well as established OEM customers, brings its manufacturing facility in Harbin and two production programs to the JV. A Hongli Zhixin-Magna headquarters will be located in Chongqing.
This JV is expected to strengthen Magna's 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.
Mike Bisson, President of Magna Seating said, "Hongli Zhixin, with their strong position in the Chinese seating market, represents a strategic partner for us in China. 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."
Ms. Wang Zhonglian, Chairman of Hongli Zhixin said, "Combining Hongli Zhixin's local knowledge with Magna Seating's global network and world-class manufacturing, I am convinced that our joint venture will provide superior values to our customers to support their growth in China."
About Magna International
We are a leading global automotive supplier with 285 manufacturing operations and 83 product development, engineering and sales centres in 29 countries. We have over 125,000 employees focused on delivering superior value to our customers through innovative products and processes, and World Class Manufacturing. Our product capabilities include producing body, chassis, 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.
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