Magna’s New Michigan Plant to Support Fast-Growing Electric Vehicle Market

Rhea-AI Summary

Magna has begun construction on a new 345,000 square-foot manufacturing facility in St. Clair, Michigan, dedicated to producing battery enclosures for the GMC Hummer EV. The project, with a $70 million investment, is expected to create over 300 jobs within five years. This facility will enhance Magna's capabilities in vehicle electrification by providing advanced battery enclosures that ensure safety and innovation in electric vehicle design. Production is slated to start in early 2022, marking Magna's 25th manufacturing site in Michigan.

Positive

• Investment of $70 million to create over 300 jobs.
• New facility enhances Magna's capabilities in vehicle electrification.
• Production expected to start in early 2022.

Negative

• None.

• New state-of-the art facility to build battery enclosures for GM’s new GMC Hummer EV
• 345,000 square-foot facility, $70 million investment expected to bring more than 300 new jobs
• Project aligns with industry’s move toward electrification

TROY, Mich., Feb. 23, 2021 (GLOBE NEWSWIRE) -- Magna has broken ground on a new manufacturing facility in St. Clair, Michigan, that will build complex battery enclosures for the all-new 2022 GMC Hummer EV.

Construction of the 345,000 square-foot facility, named Magna Electric Vehicle Structures, represents more than a $70 million investment that is expected to bring more than 300 jobs to the city of St. Clair over the next five years.

The battery enclosure contributes to the structural and safety aspects of a vehicle’s frame and protects high-voltage batteries from damage and water. Magna can develop these advanced assemblies in steel, aluminum, and multi-material configurations, including lightweight composites, to meet the individual needs of its customers.

“Bringing this new battery enclosure technology to market is another example of Magna’s ability to deliver a full-system solution to automakers supporting their focus on a lower emissions future,” said John Farrell, President of Cosma International, Magna’s body and chassis group. “The move toward electrification allows us to rethink what is possible and demonstrate how we can leverage our core strengths to continue bringing customers innovative solutions that help them meet their goals, no matter how challenging.”

“This investment by Magna will create great jobs for our state’s talented workforce as we continue to implement our Michigan Back to Work plan to get Michiganders back on their feet,” said Governor Gretchen Whitmer. “This announcement reaffirms Michigan is transforming along with the automotive industry to ensure the next generation of mobility and electrification is designed, developed, tested, and built right here in our state.”

Magna, through its body and chassis product group, has long been an industry leader in vehicle structures, providing a comprehensive range of capabilities and engineering solutions to global customers. This new business with GM marks an important evolution as the company expands its capabilities in all aspects of the vehicle electrification space.

Production at the new plant is expected to begin in early 2022. It will mark Magna’s 25^th manufacturing facility in Michigan. The team at the Magna Electric Vehicle Structures facility is actively hiring for a variety of jobs – including managers, engineers, operators and more. For information on careers with Magna, visit: https://www.magna.com/company/careers.

TAGS
Electrification, EV batteries, sustainability, battery enclosures

INVESTOR CONTACT
Louis Tonelli, Vice-President, Investor Relations
louis.tonelli@magna.com, 905.726.7035

MEDIA CONTACT
Tracy Fuerst, Vice President, Corporate Communications & PR
tracy.fuerst@magna.com, 248.761.7004

ABOUT MAGNA
We are a mobility technology company. We have more than 158,000 entrepreneurial-minded employees and 342 manufacturing operations and 91 product development, engineering and sales centres in 27 countries. We have complete vehicle engineering and contract manufacturing expertise, as well as product capabilities that include body, chassis, exteriors, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting and roof systems. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit www.magna.com.

THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO, AND EXPRESSLY QUALIFIED BY, THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S REGULATORY FILINGS. PLEASE REFER TO MAGNA’S MOST CURRENT MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION, ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT REGULATORY FILINGS, WHICH SET OUT THE CAUTIONARY DISCLAIMERS, INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE AT WWW.MAGNA.COM.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/43a62500-4187-474e-9337-5f2d8a40953e

FAQ

What is Magna's new manufacturing facility in Michigan for?

The new facility will build battery enclosures for the GMC Hummer EV.

How much did Magna invest in the new facility?

Magna invested $70 million in the new facility.

How many jobs will Magna's new facility create?

The facility is expected to create over 300 jobs.

When will production at the new Magna facility begin?

Production is expected to begin in early 2022.

What is the significance of Magna's new facility?

It enhances Magna's capabilities in the vehicle electrification space.