Canada’s Magna International, the world’s seventh-biggest supplier of automotive parts, is to invest up to $220 million in South Korea as part of an expansion drive in Asia.
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According to Reuters, the Korea Trade-Investment Promotion Agency (KOTRA) said in a statement Magna would spend $120 million on expanding its two existing production lines for motors, wipers, oil pumps and other automotive parts.
The firm was also in the process of acquiring another local parts maker for about $100 million, the agency reportedly said, citing visiting Magna vice president Steve Rodgers.
“Magna plans to make further inroads into Asian markets by using a Korean unit as a R&D (research and development) centre for the region,” KOTRA said in a statement cited by the news agency, which noted that South Korea is one of the world’s top 10 vehicle-making countries, producing over 3.1 million units a year.
Magna, which posted $15.3 billion in revenues last year, a large portion from the top three US carmakers, hopes to boost sales by making a push into Eastern Europe and Asia, Reuters added.
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