Magna buying majority stake in Chinese seat maker HLZX

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 John Wyskiel explained in a assertion. “HLZX operates an remarkable business and we are proud to develop on our present connection and strengthen our competitiveness by means of amplified vertical integration, additional producing web-sites, and comprehensive engineering and testing.”

Magna explained HLZX’s vegetation offer you just-in-time seat assembly and supply, structures, foam, and trim capabilities “that empower an exceptional sourcing solution for automakers compared to sourcing from multiple suppliers.”

“In addition to HLZX’s expansive presence, they have a remarkably able and aggressive engineering team in providing turnkey methods to Chinese automakers,” Jim Chen, vice-president and managing director of Magna Seating Asia, said in the exact assertion. 

Magna’s seating business already involves 6 r&d centers and 66 producing functions about the globe.

In August, Magna was the top supplier in the the J.D. Electric power 2020 U.S. Seat High quality and Gratification Review. It concluded an field-leading initially in a few of 7 groups, and 2nd in a fourth. Lear Corp. and Bridgewater Interiors each and every gained a pair of groups.

Magna ranks No. 3 on the Automotive News listing of Top a hundred Worldwide Suppliers with $39.43 billion in income to automakers in 2019.