Magna opening $100 million plant in Mexico

Magna International Inc. announced today the development of a new state-of-the-art facility in San Luis Potosi, Mexico. The announcement followed a meeting between Don Walker, CEO of Magna, and the President of Mexico, Felipe Calderon, at the World Economic Forum in Davos, Switzerland.

This facility will be a division of Cosma International, an operating unit of Magna International Inc. and a leading global automotive body and chassis system supplier. The new facility is expected to be approximately 300,000 square feet with the ability to expand up to 450,000 square feet. 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 more than $100 million USD to build the new facility. The launch of the plant is scheduled for 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. "I would like to thank ProMexico and the San Luis Potosi Government through the Secretariat of Economic Development for their ongoing cooperation and support."

"This new planned facility in San Luis Potosi underscores our commitment to bring world-class manufacturing capabilities to locations around the world to support the needs of our global customers," said Horst Prelog, President of Cosma International.

"The Mexican government is focused on supporting Magna International to take advantage of the business opportunities in Mexico," said Carlos Guzman, CEO of the Mexican trade and investment agency ProMexico. "Our government's interest is to make sure that investment in Mexico, from global leaders such as Magna International, are a success."

ProMexico is the Mexican Government institution in charge of strengthening Mexico's participation in the international economy. With this objective in mind, the institution supports the export activity of companies established in the country and coordinates actions to attract foreign direct investment to national territory. ProMexico was established on June 13, 2007, and is a sectorial public trust under the Ministry of the Economy, and operates through a network of 32 offices throughout Mexico and more than 28 offices abroad.

Cosma International, an operating unit of Magna International, manufactures a comprehensive range of metal body systems, components, assemblies and modules including complete vehicle frames, chassis systems and body-in-white systems using a variety of innovative processes including hydroforming, stamping and roll forming. Cosma has 37 manufacturing facilities and 12 product development and engineering centers worldwide.