Magna International : To Acquire Majority Ownership of Honglizhixin

By Michael Dabaie

Magna International Inc. agreed to acquire majority ownership of Honglizhixin, a major seat supplier to Chinese automakers.

At the same time Magna will acquire a majority stake in its existing seating joint venture with Honglizhixin. The two companies currently operate a 50/50 joint venture formed in 2015.

The current joint venture includes two manufacturing plants. Under the new ownership agreement, 10 plants will be added to Magna's manufacturing footprint.

"China is an important market for Magna where we are committed to delivering high quality seat technology to both domestic and foreign automakers, as well as non-traditional startups in the area of mobility, " said John Wyskiel, president of Magna Seating.

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