Auto parts manufacturer Magna focuses on the Chinese market
Magna International expects China's sales revenue to reach $4 billion by 2020, four times the estimated figure this year, said company CEO Don Walker.
Magna expects China's sales in 2013 to be nearly $1 billion, up from $800 million last year. Due to the rapid growth of the Chinese auto market, the company expects its sales revenue growth in China to accelerate.
"Given the business we have signed, sales to us (in China) will be around $2 billion by 2015, and we hope to double at least $4 billion by 2020," Walker said at a small media meeting in Shanghai last month. Say.
And this is just organic growth, he said. "If we make an acquisition, our growth will be even faster," he added.
At present, Magna has 26 factories and 8 engineering centers in China with a total of 9,200 employees.
To support the growth of local businesses, Magna has planned to invest $1 billion in the construction of eight new plants in China during 2011-2015.
Walker expects Magna to generate $34 billion in global revenue this year. The company entered China in 1996, but its current income from the Chinese market accounts for only about 3% of its total revenue.
"Magna entered the Chinese market relatively late, partly because of our rapid growth in Europe and partly because of the [global economy] crisis," he explained.
However, China has now become the focus of Magna's market and hopes to achieve rapid growth locally. "I hope that one day we will be one of the largest auto parts suppliers in the Chinese market," Walker said.