Magna stated that HLZX plants will offer just-in-time seat delivery and meeting capabilities, structures, foam and moldings “providing an optimal source solution for automakers relative to suppliers.”
Magna International announced Thursday that it agreed to gain the main stake in Honglizhixin (HLZX), a major seat supplier for Chinese automakers, expanding the Canadian supplier’s seat functions throughout China.
The terms of the acquisition were revealed.
Magna also announced that it would gain a majority stake in its existing joint venture with HLZX.Both corporations have been operating lately with a 50/50 created in 2015.
The existing Magna-HLZX partnership includes two production plants.Under the new ownership agreement, 10 plants will be added to Magna’s production footprint, adding what they call “critical mass and scale” to their China headquarters operations.
“China is a vital market for Magna, where we are committed to providing high-quality seating generation to domestic and foreign car manufacturers, as well as non-traditional mobility start-ups,” Magna Seating President John Wyskiel said in a statement.”HLZX leads an impressive business, and we are proud to leverage our existing data and competitiveness through greater vertical integration, more production and engineering amenities, and comprehensive testing.
Magna stated that HLZX plants will offer just-in-time seat delivery and meeting capabilities, structures, foam and moldings “providing an optimal source solution for automakers relative to suppliers.”
“In addition to HLZX’s extensive presence, they have a highly professional and competitive engineering team to provide turnkey responses to Chinese automakers,” Jim Chen, vice president and general manager of Magna Seating Asia, said in the same statement.
Magna’s headquarters business already includes six progression centers and 66 production operations worldwide.
In August, Magna was the number one supplier of J.D.’s seat quality and satisfaction study.Power 2020 in the U.S. But it’s not the first time He finished first in the industry in 3 of the seven categories, and moment in a fourth.Lear Corp, and Bridgewater Interiors each won a couple of categories.
Magna is ranked third on Automotive News’ list of the world’s 100 most sensitive suppliers with $ 39.43 billion in sales to automakers in 2019.
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