Magna Powertrain plans to invest USD11.5m to expand its powertrain manufacturing plant in Muncie, Indiana (US), reports Automotive Business Review. The investment will be spent on buying equipments for a new automotive component manufacturing and setting up a new assembly line to accommodate new business from GM. The expansion is scheduled to be completed by early 2014 and is expected to create about 76 new jobs by 2016. The Indiana Economic Development Corporation has offered the company up to USD400,000 in conditional tax credits and up to USD75,000 in training grants based on the company's job creation plans.
Significance: Magna Powertrain operates two facilities in Muncie which produce about 35,000 drivetrain components per day for the global automotive industry. The move to expand its production capacity in Indiana is in line with Magna’s expansion plans in North America which garnered about 52.7% of the company’s total sales in 2012. Magna has made significant investments in recent months in order to bolster its presence geographically, with an intensified focus in the North American region. In 2012, the company spent USD1.92bn, including investments in fixed assets – which touched a peak of USD1.27bn; USD122m was spent in investments and other assets. In 2013, the company targets a 70% increase in total production volumes in the North American region. In January 2013, Norplas Industries, a division of Magna, opened a paint line in Michigan (US) and Decostart Industries, Magna’s other division, announced plans to expand its plant in Carrolton, Georgia (US).
