Canadian auto component maker Magna International Inc will set up two new plants at Sanand in Gujarat as part of its expansion in India. The company, however, did not disclose the investment to be made on the two new plants. "While the new plants reflect business awards for vehicle programs built off global-platforms, they also help position Magna for further growth in India as vehicle production expands," the company said in a statement on its website.
At one of the new Sanand facilities, Magna will make complete seat systems for a leading automaker, the company said without disclosing the identity. The 2,15,000-square-foot plant will employ approximately 200 people and is expected to begin volume production in 2015, it added. he second new facility in Sanand will manufacture body and chassis systems for multiple customers. The 3,56,000-square-foot plant will employ approximately 400 people and also expects to begin volume production in 2015, it said.
Commenting on the development, Magna Asia Chief Marketing Officer and President Jim Tobin said: "Magna's growth in markets such as India reflects our customers' need for world-class, innovative suppliers. With almost a million square feet of capacity now installed in India, we believe we are extremely well-positioned to support the increasing vehicle production forecast for the Indian automotive industry."
Magna currently has a 279,000-square-foot body and chassis plant in Pune which performs blanking, stamping, forming, as well as welding and assembly on programs for customers such as General Motors, Volkswagen, Tata Motors and Mahindra & Mahindra. It also has a 225,000-square-foot body and chassis plant in Chennai, which performs stamping, welding and assembly for customers such as Ford and Nissan in India, as well as customers outside India.
The company has a seating design and engineering centre in Pune and a vacuum pump manufacturing facility in Bangalore, serving customers such as Maruti Suzuki, Honda Cars India, Mahindra & Mahindra, Renault-Nissan and Tata Motors. It also has three engineering centres for various parts in Bangalore, Chennai and Pune which provide its customers in India broad product and process expertise on a local basis, as well as global program coordination. Magna currently employs 1,600 people. With the two new Sanand facilities, Magna will have 11 manufacturing locations and four engineering centres. Earlier in the day, Magna had announced formation of a 50:50 JV with Tata AutoComp Systems to provide seating systems to the commercial vehicle industry in India.
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