Magna International on Thursday explained it has agreed to purchase the greater part possession of Honglizhixin (HLZX), a major seat supplier to Chinese automakers, increasing the Canadian supplier’s seating capabilities across China.
Phrases of the invest in were not disclosed.
Magna also introduced that it will purchase a the greater part stake in its present seating joint undertaking with HLZX. The two firms at the moment function a fifty/fifty undertaking formed in 2015.
The existing Magna-HLZX partnership includes two producing vegetation. Beneath the new possession settlement, ten vegetation will be additional to Magna’s producing footprint, introducing what the supplier phone calls “critical mass and scale” to its seating functions in China.
“China is an crucial marketplace for Magna the place we are dedicated to providing significant good quality seat know-how to the two domestic and foreign automakers, as perfectly as non-traditional startups in the area of mobility,” Magna Seating President