The construction of Magna's auto parts manufacturing plant is considered a milestone on the road to localising the auto industry in Russia.
Magna International is one of the world's leading manufacturers of auto parts. The company was established in 1957 with the name Multimatic and was given its present name in 1973. Its headquarters, one of the largest in Canada, are based in the city of Aurora, Ontario.
Magna supplies the components necessary for auto assembly to Ford, Toyota, Honda, Volkswagen, Porsche, General Motors, DaimlerChrysler, Mitsubishi, Hyundai, Great Wall Motors and others. In addition to this, Magna International controls Magna Steyr, an Austrian company specialising in auto assembly on the order of original automakers (it assembles cars for brands such as BMW X3, Mercedes E-Class and G-Class, Saab 9-3 Convertible, Jeep Grand Cherokee, Chrysler 300 and Chrysler Voyager). In 2005, Magna turned out 230,500 cars. It employs about 72,500 people at 317 plants in 25 countries. In 2009, it posted revenues of $17.4 billion. Magna is the largest automaker in the world that does not have its own brand.
In 2006, after construction of the Toyota and General Motors auto plants began in St Petersburg, Magna applied for a plot of land in order to build a plant in St Petersburg. It was allocated a plot in the Shushary Industrial Park in December 2006.
The survey work necessary to begin construction was carried out throughout 2007. In 2008, Magna held negotiations with auto plants located in the region and consequently signed agreements of intent with Hyundai Motor Company for the supply of stamped parts and Ford Motor Company for the supply of plastic parts.
On December 17, 2008, the St Petersburg government and Magna signed a Memorandum of Understanding to regulate the implementation of the investment project to build an auto parts plant in St Petersburg.
In April 2009, the St Petersburg government resolved to give Magna the go-ahead to design and build an auto parts plant. And in March 2010, Magna was authorised to build the plant. The first phase of construction was scheduled to be completed and commissioned on September 21, 2010.
The plant has a production area of 21,500 square metres and 2,500 square metres of offices. The plant employs 170 people, with plans to double that number in future.
The plant will manufacture body parts and metal components for passive safety systems for automakers such as Hyundai, General Motors, Nissan and Volkswagen.