AURORA, ONTARIO (Aug. 5, 4:05 p.m. ET) — Magna International Inc. is forming a three-way joint venture to take over an existing injection molding and painting facility to produce parts for automakers in China. The deal opens the door for further growth of its exterior panel production in the region.
Aurora, Ontario-based Magna will hold 51 percent of MCC Wuhu Exteriors under its Magna Exteriors and Interiors unit. Changshu Automotive Trim Co. of Changshu, China, will own 34 percent and Chery Tech 15 percent.
The 300,000-square-foot Wuhu plant employs 600 and supplies front and rear bumper fascias for Chery Automobile Co. Ltd., a sister company to Chery Tech.
The joint venture will provide a key entry point for Magna's exteriors group in China, said Bob Brownlee, president of Magna Exteriors and Interiors, in an Aug. 5 news release. The auto supplier already has a manufacturing presence in China for interior parts, but now has the foundation to begin a “growth phase” for exteriors.