Magna International Inc. (MGA) revealed that its body and chassis systems operating unit, Cosma International, would open a solar component manufacturing facility in Phoenix, Arizona that will strengthen its position in the renewable energy market.
The 166,000-square-foot facility, called Cosma Power Systems, will manufacture metal structures and roll-formed components and systems for the photovoltaic (PV), concentrated photovoltaic (CPV), and concentrated solar power (CSP) for the solar market. It is expected to begin production this month, employing 50-60 full-time workers.
Cosma International manufactures a comprehensive range of metal body systems, components, assemblies and modules for major automakers including General Motors (GM), Honda Motor (HMC), Hyundai/Kia, Jaguar, Mercedes-Benz Smart, Mitsubishi, Porsche, PSA Peugeot Citroen, Renault-Nissan, Subaru, Suzuki, Toyota Motor (TM) and Audi.
However, Cosma has recently started expanding in the non-automotive markets, especially in the green energy business. The company is already serving as a manufacturing partner for Skyline Solar, a California-based manufacturer of photovoltaic systems. Cosma produces the metal components for Skyline’s concentrating-solar-power system.
Apart from solar systems, Cosma has also been expanding globally in its main business. Recently, it closed a transaction with Germany-based ThyssenKrupp Automotive Systems GmbH to acquire the latter’s Brazilian unit, ThyssenKrupp Automotive Systems Industrial do Brasil Ltd.
With this acquisition, Magna will become the leading supplier of metal-forming and chassis systems to OEMs in South America. It will also add to the company’s existing nine manufacturing facilities, two R&D facilities and approximately 3,650 employees in the region.
Last month, Magna also announced that it has agreed to acquire four die casting operations of BDW Technologies in Europe. Two of these operations are located in Germany, one in Hungary and the other one in Poland.
The acquisition will be closed by Cosma in the first quarter of 2012. It is expected to strengthen Cosma’s product portfolio and will enable the company to deliver lightweight solutions for complex structural and chassis components in steel, aluminum or aluminum-steel hybrid to customers across the world.
Magna, a Zacks #5 Rank (Strong Sell) stock, is a leading manufacturer and supplier of automotive components based in Aurora, Canada. The company designs, develops and manufactures automotive systems, assemblies, modules and components, besides engineering and assembling complete vehicles, primarily for sale to OEMs of cars and light trucks.
The company earned $226 million or 94 cents per share in the third quarter of the year compared with $256 million or $1.10 per share in the same quarter a year-ago. Revenues increased 21% to $6.97 billion driven by higher sales across all its operations. Gross profit improved 2% to $769 million, despite a 24% rise in cost of goods sold to $6.20 billion.
Magna expects total sales to range between $28.1 billion and $28.9 billion for full year 2011. Based on operating regions, the company anticipates sales to range between $13.6 billion and $13.9 billion in North America, $8.5 billion and $8.7 billion in Europe and $23.4 billion and $24.0 billion in Rest of the World for the year.
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