Canadian Manufacturing

Magna forms new Chinese joint venture

by Canadian Staff   

Canadian Manufacturing
Manufacturing Operations Supply Chain Automotive

Company to build on its strong position in Asia with seating partnership

SHANGHAI—Magna International Inc. already has a strong footprint in the world’s most populous country; the company operates 24 manufacturing facilities and employs nearly 10,000 workers in China.

And that footprint is about to get a little broader.

Magna has announced it has formed a new 50/50 joint venture with Chongqing Hongli Zhixin Automotive Parts Manufacture Co. The agreement will see the two firms collaborate on providing seating systems and seating components to Changan Ford as well as other customers within China.

“Hongli Zhixin, with their strong position in the Chinese seating market, represents a strategic partner for us in China” Mike Bisson, president of Magna Seating, said. “The combination of our global seating expertise and their knowledge of the Chinese market delivers a unique value proposition that ultimately positions both companies for future growth opportunities.”


Hongli Zhixin, is one of China’s leading independent seating suppliers. Magna noted it has capabilities in foam, trim and structures, as well as established OEM customers. “[It] brings its manufacturing facility in Harbin and two production programs to the JV,” the company said.

The new joint venture will be headquartered in Chongqing. The Aurora, Ont.-based company expects the partnership to strengthen the company’s position in China by “providing additional regional knowledge of customer and market expectations, enhancing the competitiveness of its cost structure through vertical integration and facilitating faster response times.


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