Magna International and Chongqing Xingqiaorui have agreed to form a strategic body in white joint venture in China.

Under the terms of the agreement, Cosma International, Magna's body and chassis operating unit, will hold a 53% stake in the JV, while Xingqiaorui will hold the remaining 47%. The transaction is expected to close in late 2015 or early 2016, subject to regulatory approvals.

Xingqiaorui, a Tier 1 supplier of automotive body in white components and a key supplier to Changan Ford, brings its three China manufacturing facilities (two in Chongqing and one in Hangzhou) to the JV with Magna adding its new Chongqing manufacturing facility as a part of the joint venture.

"This strategic JV will leverage Magna's world-class manufacturing technologies to help support Xingqiaorui's new and existing customers and will enable Magna to expand its presence and product offerings within the China market with its strong track record and successful long-term customer relationships," a joint statement said.

"Magna recognizes Xingqiaorui's strong presence and reputation in the China market, and combined with our manufacturing expertise, we anticipate a successful and collaborative team approach to support and grow with our current and future customers," said John Farrell, president of Cosma International.

The board of Xingqiaorui said: "The collaboration and synergies gained through this joint venture is a great opportunity for both companies. It allows us to provide better products and service to customers and grow our business with a global company like Magna, as well as strengthen our company, employee base and customers."