Magna Composites, a subsidiary of Canadian auto parts maker Magna International Inc. (MGA), will expand three plants in the Rowan, Catawba and Caldwell counties in North Carolina (N.C.). Magna Composites would spend $10 million for the expansion, of which $1.1 million will be sourced from state incentives in the category of job development investment grants.
The proposed expansion would add 327 new jobs on top of the existing 360 employees at the plants. Rowan County plant is the largest of the three facilities, which would absorb 183 jobs. Out of the remaining 144 jobs, 134 would be added to the Caldwell plant and 10 to the Catawba plant, the smallest among the three plants. The new workers will be paid average annual wages of $33,352 apart from benefits.
Magna Composites, a part of Magna’s Exteriors and Interiors business, acquired the three N.C. plants in June last year as part of its purchase of assets of the composites business of Meridian Automotive System. The Allen Park-based Meridian Automotive System was a supplier of technologically advanced metals, thermoplastics and composites products. It closed down its operations after filing for Chapter 7 bankruptcy liquidation in August last year.
Magna International, based in Aurora, Canada, is a manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, besides engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks. Its product portfolio includes automotive interior and exterior systems, seating systems, body and chassis systems, electronic systems, powertrain systems and roof systems.
In the first quarter of 2010, Magna International has reported a profit of $209 million or $1.83 per share (excluding special items) in sharp contrast to a loss of $200 million or $1.79 per share in the same quarter of previous year. The profit was significantly higher than the Zacks Consensus Estimate of a profit of 79 cents per share.
Magna benefited from a recovery in light vehicle production in its two principal markets, North America and Europe, as well as from restructuring actions, right-sizing and other cost reduction efforts. Due to these factors, revenues shot up 54% to $5.5 billion. Operating income was $285 million compared with an operating loss of $230 million in the first quarter of 2009.
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