SAILAUF, Germany—With orders at its European contract manufacturing plant piling up, Magna International Inc. has started construction on a new paint plant in nearby Slovenia.
The Canadian auto parts firm said it will spend approximately $100 million on the new facility, which is scheduled to start operations in 2019.
Magna has lined up a long list of vehicle assembly orders for its Graz, Austria facility from BMW, Mercedes-Benz and Jaguar Land Rover and will use the new paint shop in Maribor-Hoče, Slovenia to support the new vehicle programs. The new site is about 75 kilometres from the Graz plant, where Magna expects to build about 200,000 cars per year by 2018.
The Aurora, Ont.-based company broke ground on the Slovenia paint shop Oct. 17 and said it has already begun recruiting. The plant will eventually employ about 400 workers.