SEOUL, Korea, January 24, 2009 – World Industries Ace Corporation (WIA), a Korea-based powertrain company affiliated with Hyundai Kia Motors Group, and Magna Powertrain, an operating unit of Canada-based Magna International Inc., today announced the formation of a 50/50 joint venture to establish a new manufacturing facility located in Asan, Chungcheongnamdo, Korea

 

WIA and Magna Powertrain signed a Memorandum of Understanding in June, 2008, and started development in August, 2008.  The target date for initial production is early 2010.

 

The new facility will produce and supply all-wheel-drive (AWD) couplings for Hyundai Kia Motors Group for global markets. Production volume capacity of the AWD-couplings is approximately 600,000 units per year.

 

“Collaboration of the two global companies through this joint venture is truly a magnificent opportunity both for WIA and Magna Powertrain,” said one of the top executive directors of WIA. “It allows WIA to strengthen our powertrain business and diversify our customer base, while allowing Magna Powertrain to expand its market position in Asia.”

 

“This joint venture strategically positions both companies for global growth in the AWD segment,” said Jake Hirsch, President of Magna Powertrain. “We look forward to working together with WIA, leveraging each other’s strengths and delivering global powertrain solutions to Hyundai Kia Motors Group.”

 

About WIA
As the very first company in Korea to have achieved a production of one million units of automotive transmission in 1993, WIA (www.wia.co.kr) is one of the major part suppliers of Hyundai Kia Motors Group, the 5th largest automakers in the world, according to the Automotive News 2008 Global Data Book. Hyundai Kia Motors Group has sold 3,961,629 automobiles worldwide (Hyundai sold 467,000, and Kia 305,473 in the United States alone), climbing six positions in just eight years over other global automakers such as Fiat, Chrysler, PSA/Peugeot, Nissan, and Honda.

 

With seven factories located globally, WIA has built a solid foundation in their automotive business where they design, develop and manufacture motor vehicle components from CVJ to transmissions to engines, primarily for supply to Hyundai and Kia motor vehicles, as well as other domestic and global automakers. WIA finds the launch of joint venture in Korea will enhance the competitive edge in the global market both in the product quality and price, especially through the prospective localization as opposed to importing fully assembled components in the past.

 

About Magna Powertrain
Magna Powertrain is a premier supplier for the global automotive industry with full capabilities in powertrain design, development, testing and manufacturing. Whether supplying entire systems or individual components, systems integration is what sets us apart from our competitors.  Magna established a presence in Korea in 1999 and today Magna has seven Korean facilities including: two wholly owned facilities, one facility through the joint venture with Dae Yee and four facilities through a joint venture with Shin Young Metal. The addition of this eighth facility further strengthens Magna’s position to service Korean customers inside Korea and their operations around the world.

 

About Magna International:
Magna International (www.magna.com) is the most diversified automotive supplier in the world. We design, develop and manufacture automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and structural systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; as well as complete vehicle engineering and assembly.

 

Magna has approximately 77,500 employees in 241 manufacturing operations and 86 product development, engineering and sales centers in 25 countries.

 

PR Contact in Korea:
Il Koo Cho
Phone: +82/55/280-9021
E-Mail

 

North America & Asia Contact:
Tracy Fuerst
Phone:  248-729-2731
E-Mail

 

Europe Contact:
Daniel Witzani
Phone: +43/2253/600-1015
E-Mail