Magna Powertrain breaks ground on new facility in Tianjin

---

AutoChina.org (Tianjin October 26)- Magna Powertrain, an operating unit of Magna International Inc., has held a ground-breaking ceremony of the construction of its new manufacturing facility here in Tianjin on October 24, joined by Tianjin government officials as well as executives from Volkswagen AG and Magna International China.

The new facility will be approximately 13,500 square meters and could employ as many as 400 people at full production. Assembly of the first units is anticipated to commence in 2012.

“As our customers expand their manufacturing footprints around the world, we will be there to support them with world-class design, engineering and manufacturing,” said Jake Hirsch, president of Magna Powertrain.

The Tianjin plant will have an annual production capacity of 760,000 units power take-off and rear axle drives and 40, 000 units of transfer cases, introduced Greg Deveson, senior vice president for Magna Powertrain’s driveline systems to CBU/CAR during a media interview.

The first phase of the plant will cover 135,000 square meters, and phase two will cover an additional 5,000 square meters and will be finished in 2015. Another 20,000 square meters land expansion is reserved for Magna Powertrain, added Greg.

Tianjin plant will support the production of Audi Q3 and Volkswagen Tiguan, which will start production in 2012 and 2016 respectively. The plant will also serve the production of Volkswagen’s future SUV models, which will start production in 2015.

The new plant will cooperate with Magna Powertrain’s Changzhou plant, which was established in 2005 and currently owns 600 employees. Major customers of Changzhou plant include Ford, General Motors, Volkswagen and Yulon, said Greg.

Magna Powertrain also serves Chinese independent brands including Geely, Brillance, and Great Wall, told Greg to CBU/CAR. “Magna values the growing China auto market and our Chinese customers,” said Greg to the media.

Volkswagen’s recent purchase order to Magna Powertrain to produce rear axle drives and power take-off units for locally assembled VW and Audi models in China marks the starting point of this approximate $68 million investment, according to the company.

Magna Powertrain established its first China operation in 2005. Since then Magna Powertrain has grown to three locations in China, including sales and engineering centers in Shanghai and Changzhou and a manufacturing facility in Changzhou.

About Magna Powertrain

Magna Powertrain, an operating group of Magna International, is a global supplier for the automotive industry with full capabilities in powertrain design, development, testing and manufacturing.

In line with increasing environmental pressure, many of Magna Powertrain’s innovations focus on electronically controlled technologies, supporting the quest for improved efficiency and reduced emissions. Manufacturing locations, engineering centers, and sales offices are situated close to Magna Powertrain’s global customer base, stretching throughout all regions of the world.