Magna forms Chinese joint venture to produce front-end modules
Canadian supplier Magna International has created a joint venture with Chongqing Guangneng Rongneng Trim Co. to produce front-end modules in Hangzhou for automakers in China.
Front-end modules typically include plastic bumper fascias, lighting and radiator components.
The partners will have equal stakes in the joint venture, dubbed Magna Guangneng Automotive Trim System. Magna is based in Aurora, Ontario, and Chongqing Guangneng is headquartered in Chongqing.
Magna's sales in China approached $1 billion (6 billion yuan) last year, up from $800 million in 2012. In October, CEO Don Walker said Magna is aiming for sales of $2 billion in 2015.
To support its growth in China, Walker said at the time that Magna is spending $1 billion to build eight plants in the country from 2011 to 2015.