Magna Buys Four Chassis Plants in Brazil from ThyssenKrupp Automotive Systems, expanding its network in South America and allowing it to increase its supply to automakers in the region. ThyssenKrupp Automotive Systems Industrial do Brasil Ltda. (TKASB) manufactures and assembles front suspension systems and front- and rear-control arms for Ford Motor Co., Fiat, Renault-Nissan, Honda, and PSA.
Magna Buys Four Chassis Plants in South America
Robert Brooks
12/06/2011
Tier One automotive supplier Magna International Inc. (NYSE: MGA) is buying four plants in Brazil from ThyssenKrupp Automotive Systems, expanding its network in South America and allowing it to increase its supply to automakers in the region. ThyssenKrupp Automotive Systems Industrial do Brasil Ltda. (TKASB) manufactures and assembles front suspension systems and front- and rear-control arms for Ford Motor Co., Fiat, Renault-Nissan, Honda, and PSA.
The value of the purchase was not announced. The four Brazilian plants will become operations of Magna’s Cosma International operating unit. Magna already has nine manufacturing plants and two R&D centers in South America, with approximately 3,650 employees. The TKASB plants have a total employment of 770.
TKASB’s has been part of ThyssenKrupp’s Bilstein Group, which produces chassis structural components and modules. Earlier this year, ThyssenKrupp announced plans to sell off several businesses in order to focus on the automotive markets, and to combine the Bilstein and Presta Steering businesses, together with its springs and stabilizers businesses, and the Brazilian automotive systems business.
"The acquisition represents a significant commitment to the South American automotive market and our global OEM customers," stated Horst Prelog, president of Cosma International. "Our world-class manufacturing expertise combined with an expanded footprint in South America, provides us with the ability to immediately support the local and global platforms of our OEM customers."
Magna supplies a wide range of automotive systems and components worldwide. Cosma manufactures a variety of metal body systems, components, and assemblies, including vehicle frames, chassis systems and body-in-white systems. Its operations perform numerous production processes, including hydroforming, stamping, and roll forming. Recently, Cosma bought Grenville Castings in Perth, Ont., a low-pressure casting and permanent mold foundry that produces aluminum automotive components, including thin-wall and hollow-core castings.
Currently, Cosma is closing a purchase of four aluminum diecasting operations in Central Europe from BDW Technologies. |
