RTTNews | Sep 3, 2020 09:07AM EDT

09:06 Thursday, September 3, 2020 (RTTNews.com) - Automotive supplier Magna International Inc. (MG.TO, MGA) said Thursday that it has signed an agreement to buy majority ownership of Honglizhixin, a major seat supplier to Chinese automakers.

Magna will also acquire a majority stake in its existing seating joint venture with Honglizhixin.

Magna has signed a shareholder agreement and share purchase agreement and plans to finalize the deals by the beginning of 2021.

The two companies currently operate a 50/50 joint venture formed in 2015.

The current Magna- Honglizhixin joint venture includes two manufacturing plants.

As per the new ownership agreement, 10 plants will be added to Magna's manufacturing footprint, adding critical mass and scale to the company's seating operations in China.

The majority of Honglizhixin's plants are also vertically integrated with just-in-time seat assembly and delivery, structures, foam, and trim capabilities that enable an optimal sourcing solution for automakers versus sourcing from multiple suppliers.

Read the original article on RTTNews ( https://www.rttnews.com/3126051/magna-to-buy-majority-ownership-of-honglizhixin-quick-facts.aspx)

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