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Magna International (MGA) Expands Kamtek Facility in Alabama

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Magna International Inc. (MGA - Free Report) , the Aurora, Canada-based manufacturer and supplier of automotive components recently announced the expansion of aluminum casting facilities at its Kamtek facility in Birmingham, AL. This move of vehicle lightweighting is in sync with the present global norm of lowering carbon dioxide emissions and buttress the demand for improved fuel economy.

Presently, Kamtek facility has 850 employees and it designs structural components for various well known global customers. Magna has invested around $60 million for 150,000-square-foot expansion of the facility, which is likely to create over 100 jobs.

With the new high-pressure aluminum casting facility, Magna will be able to lower vehicles weight and complexity in a better way. The new capabilities allow the company to produce full structures in one piece. This in turn, reduces vehicle mass without compromising with the performance and safety aspects.

In fact, Magna is emphasizing on innovation for solid growth. In June 2017, the company introduced D-Optic LED headlamps, which combines several high-power LEDs. Whatsoever, the latest expansion at Kamtek is in line with the company’s policy to focus on lightweighting to improve fuel economy while keeping a lid on emission.

Year to date, Magna has underperformed the industry it belongs to. The company’s shares have gained 13.4% over the period, whereas the industry rallied 23.6%.



Magna currently carries a Zacks Rank #3 (Hold).

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