Magna International said it would build a new facility in San Luis Potosi, Mexico. The announcement followed a meeting between Don Walker, CEO of Magna, and Mexican president Felipe Calderon at the World Economic Forum in Davos, Switzerland.

The facility will be a division of Cosma International, an operating unit of Magna and a global automotive body and chassis system supplier. The new facility is expected to be approximately 300,000 sq ft with the ability to expand up to 450,000 sq ft. It will employ approximately 700 people at full capacity and will produce stamped and welded assemblies for various automakers.

With the support of federal, state and municipal authorities from Mexico, the company plans to invest about US$100m USD to build the new facility with a planned launch in June 2012.

"The strategic decision to expand operations in Mexico is part of our long-term global strategy of developing in key growth markets," said Walker.