Due to full capacity at its contract manufacturing facility in Graz, Austria, Magna will build a second paint shop 75km away in Maribor/Hoce, Slovenia.
High demand for engineering and contract manufacturing by automakers such as BMW, Mercedes-Benz and Jaguar Land Rover has resulted in the Graz facility running at high capacity utilisation. Magna Steyr currently manufactures the BMW 5 Series and the Mercedes-Benz G-Class, with the Jaguar E-Pace beginning to launch now and I-Pace expected to launch early in 2018. Taking into account these and other upcoming programs, Magna Steyr is expected to contract manufacture approximately 200,000 vehicles per year by 2018.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Construction of the new facility begins today with completion of the US$100m paint shop planned for late 2018 and operations expected to begin in 2019. The recruiting process for approximately 400 new workers has already started.
"The all in one competence in vehicle engineering and manufacturing puts Magna in a unique position in the global automotive supply industry which we continuously push forward with new investments," said Günther Apfalter, president Magna International Europe and Magna Steyr.
"Furthermore we are proud to bring jobs and investment to this region."
