- Paint shop to complement production at Magna Steyr in Graz
- Facility expected to begin operations in 2019
- Recruiting for approximately 400 new employees already under way
SAILAUF, Germany, Oct. 17, 2017 /PRNewswire/ - Due to a full book of business at its contract manufacturing facility in Graz, Austria, Magna will build a second paint shop 75 kilometers away in Maribor/Hoče, 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 utilization. Magna Steyr currently manufactures the BMW 5 Series and the Mercedes-Benz G-Class, with the Jaguar E-PACE beginning to launch now and Jaguar 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.
Construction of the new facility begins today, with completion of the $100-million paint shop planned for late 2018 and operations expected to begin in 2019. The recruiting process for approximately 400 new employees 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 & Magna Steyr. "Furthermore we are proud to bring jobs and investment to this region."
TAGS
Contract manufacturing, state-of-the-art technology, economic development Slovenia
ABOUT MAGNA
We are a leading global automotive supplier with 327 manufacturing operations and 100 product development, engineering and sales centres in 29 countries. We have over 161,000 employees focused on delivering superior value to our customers through innovative products and processes, and World Class Manufacturing. We have complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure and roof systems. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit our website at www.magna.com.
This press release contains statements that constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation, including, but not limited to, statements relating to expected timing for start of production of the slovenia paint line and anticipated total production volume for all vehicles at Magna Steyr's Graz assembly plant by 2018. The forward-looking information in this document is presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "expect", "may", "would", "could", "should", "will", "likely", "anticipate", "believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such forward-looking statements are based on information currently available to us, and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation: declines in consumer confidence and the impact on production volumeS; our ability to successfully launch material new business; shifts in market share away from our top customers; shifts in market shares among vehicles or vehicle segments, or shifts away from vehicles on which we have significant content; a prolonged disruption in the supply of components to us from our suppliers; work stoppages and labour relations disputes; a reduction in outsourcing by our customers or the loss of a material production or assembly program; the termination or non-renewal by our customers of any material production purchase order; risk of production disruptions due to natural disasters or catastrophic event; and other factors set out in our Annual Information Form filed with securities commissions in Canada and our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings. In evaluating forward-looking statements, we caution readers not to place undue reliance on any forward-looking statements and readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements.
SOURCE Magna International Inc.
INVESTOR CONTACT: Louis Tonelli, Vice-President, Investor Relations, louis.tonelli@magna.com, 905.726.7035; MEDIA CONTACTS: Tracy Fuerst, Global Director of Corporate Communications & PR, tracy.fuerst@magna.com, 248.631.5396; Rej Husetovic, Director Corporate Communications & Media Relations, rej.husetovic@magna.com, (+49-6093) 9942-5056
