Magna International (TSX:MG), a Canadian auto parts supplier, announced on Thursday that it will invest $790 million to build three new supplier facilities to meet the rising demand for parts as automakers ramp up their production of electric vehicles.
Two of the new facilities will be located at Ford Motor Company (NYSE:F)'s BlueOval City campus in Tennessee to support the production of Ford’s second-generation electric truck, the company said in a statement.
One of the facilities will make battery enclosures for the truck and another will produce polyurethane foam and seats.
Magna’s third new facility will be located in Lawrenceburg and will produce vehicle frames, the company said.
All three facilities are expected to enter production in 2025 and create 1,300 jobs.
Magna shares traded modestly lower following the announcement, down 0.1% at US$61.76.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie