Magna Powertrain, an operating unit of Magna International, has started the construction of its $68m new greenfield manufacturing facility in the Tianjin Airport Economic Area in China.
The new facility will be over 13,500 sq m and can employ 400 people at full production.
The company said that the decision to launch the production centre is the result of the application by the consortium Volkswagen of rear axles and other components for motor vehicles of the brands Volkswagen and Audi made in China.
Magna Powertrain president Jake Hirsch said as the company's customers expand their manufacturing footprints around the world, and will be there to support them with world-class design, engineering and manufacturing.
The Municipal Government of Tianjin and the Tianjin Airport Economic Area has provided the company with the opportunity to set up our new facility in a location which can serve both current and future automotive customers, and the company is planning for a long relationship with Volkswagen and other organizations in the region, said Jake Hirsch.
The assembly of the first units is expected to commence in next year.