Magna Auto Components Plant in Kaluga to Launch Operations

Strategic Insights -

Canadian Magna International is set to launch its plant in Kaluga for manufacturing plastic auto components in the near future, with Volkswagen as its primary consumer. The investment for the plant's construction and equipment totals 74 million euros, indicating a significant commitment to the Russian market. The plant's main output is stamped and welded parts used in car bodies, with Hyundai being the largest buyer, accounting for 80% of output.

Key Takeaways:

  • Magna International will open its plastic auto components plant in Kaluga, Russia, in the near future.
  • Volkswagen will be the main consumer of the plant's output, with talks also underway with PSA Peugeot Citroen.
  • The company has invested a total of 74 million euros in the components plant in the Leningrad region, including 33 million euros for construction and 41 million euros for equipment.
  • The plant has a capacity to produce output worth 100 million euros a year, with the potential for expansion to 40,000 square meters from the current 16,700 square meters.
  • The plant's output is expected to reach 100% capacity utilization by 2012, up from 60% in 2011.
  • Hyundai leads as the largest buyer of the plant's output, accounting for 80%, with other customers including General Motors, Nissan, and Volkswagen.
  • Talks are underway with Toyota, with the main question being when Toyota will localize its production in Russia.

Statistics:

  • 74 million euros: Total investment for the components plant in the Leningrad region.
  • 33 million euros: Investment for construction of the plant.
  • 41 million euros: Investment for equipment of the plant.
  • 100 million euros: Annual capacity of the plant's output.
  • 16,700 square meters: Current size of the plant.
  • 40,000 square meters: Potential size of the plant after expansion.
  • 80%: Share of output bought by Hyundai.
  • 60%: Capacity utilization of the plant in 2011.
  • 100%: Capacity utilization of the plant expected by 2012.

Sources:

  • Interfax, "Magna International to launch plant in Kaluga for auto components", Sept 21.