Auto parts manufacturer Magna focuses on China market

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Magna International expects sales in China to reach $4 billion billion by 2020, four times the number expected this year, CEO Don Walker said.
Magna expects China sales of nearly $1 billion in 2013, up from $0.8 billion last year. The company expects its sales revenue growth in China to accelerate due to the rapid growth of the Chinese auto market.
"Given the business we have already signed, our sales (in China) will be around US $2 billion by 2015, and we hope to at least double to US $4 billion by 2020," Walker said at a small media conference in Shanghai last month.
And that's just organic growth, he said. "if we make acquisitions, we will grow even faster," he added.
At present, Magna has 26 factories and 8 engineering centers in China, with a total of 9200 employees.
To support the growth of local business, Magna has planned to invest US $1 billion billion in the construction of eight new factories in China during 2011-2015.
Walker expects Magna's global revenue to reach $34 billion billion this year. The company entered China in 1996, but its revenue from the Chinese market currently accounts for only about 3% of its total revenue.
"Magna entered the Chinese market relatively late, partly because of the rapid growth of our business in Europe, and partly because of the [global economic] crisis," he explained.
However, China has now become a key market for Magna, and hopes to achieve rapid growth locally. "I hope that one day we can become one of the largest auto parts suppliers in the Chinese market. "said Walker.