TIANJIN, China - Magna International Inc. has begun construction of a plant to produce front and rear axle drives, transfer cases and power takeoff units in the north China port city of Tianjin.
The $68 million plant will begin production in 2012.
Initially, the plant will supply parts for Chinese-built models such as the Audi Q3, Volkswagen Tiguan and an unspecified Volkswagen SUV, said Greg Deveson, senior vice president of Magna Powertrain.
The plant also may supply Zhejiang Geely Holding Group Co., Great Wall Motor Co. and Shenyang Brilliance Jinbei Automobile Co. Magna is having discussions with those companies, Deveson said.
Magna Powertrain has sales and engineering centers in the east China cities of Shanghai and Changzhou. It also has a plant in Changzhou that produces oil pumps and transmission parts for Ford Motor Co., General Motors and Volkswagen AG.