Magna International Inc. is targeting to generate $4 billion (CHY24.35 billion) in sales in China by 2020, according to chief executive Don Walker. The Canadian supplier is expected to post nearly $1 billion in sales this year, up from $800 million in 2012. Magna expects its sales growth in China to fast-track, boosted by new business gained from the Chinese vehicle market.
Walker remarked that Magna will post $2 billion in sales by 2015 and around $4 billion by 2020, achieved through organic growth. He remarked that if Magna makes acquisitions, its sales growth would be faster than what he expects. Magna currently has 26 manufacturing sites and eight engineering offices in China and has a workforce of around 9,200 people.
To back up its growth in the Asian country, Magna plans to invest around $1 billion to build eight plants from 2011 to 2015, Walker said, remarking that the Canadian company is expected to post $34 billion in global sales this year.
Magna penetrated China in 1996, but the country only accounted for around 3 percent of its global sales. Walker quipped that Magna was late in coming to China, partly due to the fact that the company was experiencing strong growth in Europe and partly because of the global economic downturn. Magna’s CEO remarked that China is now the company’s major focus, with an aim to grow rapidly in the country and become one of the biggest auto parts suppliers in the market.