Magna has access to two manufacturing plants in China because of its existing joint venture; when the purchase completes it will have 10. Most of these plants are vertically integrated with just-in-time delivery, structures, foam, and trim capabilities. The agreement will also give Magna considerable size in the world's largest car market.
'[We will] build on our existing relationship and strengthen our competitiveness though increased vertical integration, additional manufacturing sites and full engineering and testing,' said the company’s president, John Wyskeil.
Jim Chen, VP Magna Seating Asia, said: 'In addition to HLZX's expansive presence, they have a highly capable and competitive engineering team.'
No price was disclosed.