In recent years, China’s automotive industry has shown promising growth, surpassing the United States to become the world’s largest automotive market, which has created significant opportunities for the country’s auto parts industry to expand, strengthen, and improve.
Since the acceleration of integrated development in the Yangtze River Delta region, a large number of foreign-funded enterprises, optimistic about the prospects of the Chinese market, have chosen the Yangtze River Delta as their base and increased their investments in the Chinese market.
In 2018, based on the site selection requirements of Magna, a Fortune 500 company and renowned automotive parts manufacturer, GuChuan United precisely matched available resources and assisted the company in establishing its factory in Kunshan, which has now been completed and is in full operation, showing strong growth momentum.
Fortune 500 Company Partners with GuChuan United
Opening a New Chapter in China
Headquartered in Ontario, Canada, Magna is one of the world’s largest automotive parts manufacturers and is widely regarded as the most diversified automotive parts supplier globally, with 294 factories and 87 engineering, R&D, and sales centers worldwide.
Since entering China in 1996, Magna has established 31 factories, 10 R&D centers, and sales offices across the country, employing over 10,000 people. The company has set up factories or R&D centers in China for all eight of its product systems—including body, chassis, exterior trim, seating, powertrain, electronics, mirrors, and locking systems—as well as vehicle design and contract manufacturing, and continues to expand.
The investment promotion team at GuChuan United fully understands that only by thoroughly grasping a company’s site selection requirements can they identify the ideal location for its development. After gaining a deep understanding of Magna’s specific requirements regarding location, policies, industrial environment, and transportation, GuChuan United’s service team swiftly launched a regional survey and, within a short period, presented professional site selection proposals for different regions for Magna’s consideration.
After a comprehensive evaluation of multiple site selection proposals, Kunshan’s open and inclusive attitude, coupled with its highly focused automotive industrial chain, won Magna’s favor, and the two parties embarked on a new chapter of a powerful partnership.
“Top of the Top 100 Counties”
Creating a “Powerful Magnet” for Automotive Industry Agglomeration
Over more than four decades of reform and opening-up, Kunshan has undoubtedly been one of the cities that has benefited most from an export-oriented economy. By driving industrialization through internationalization and urbanization through industrialization, Kunshan has evolved from an agricultural county known as one of “Suzhou’s Six Little Ones” in the 1980s to the “Top County” for 16 consecutive years, charting a unique “Kunshan Path.”Currently, Kunshan hosts over 8,900 foreign-invested projects from 56 countries and regions, with foreign investment, services, and innovation serving as its three key strengths.
Kunshan’s commitment to building a complete automotive manufacturing industrial chain is the fundamental reason why Magna chose to establish itself here.
Focusing on strengthening the supply chain for seven key automotive components, Kunshan has strived to achieve vertical integration of auto parts, established a provincial-level auto parts manufacturing base, and is home to several leading enterprises in the production of well-known auto parts, forming a complete auto parts industrial chain. In recent years, beyond auto parts manufacturing, Kunshan has also been actively introducing complete vehicle manufacturing projects.
A complete industrial chain facilitates substantial value exchange among upstream and downstream enterprises. The high concentration of the industrial chain not only reduces production costs but also fosters technological R&D and innovation—factors of immense value to Magna.
With 12 years of deep expertise in the investment promotion sector, GuChuan United has established a presence in 14 cities, providing site selection and investment consulting services to over 500,000 enterprises. Against the backdrop of the nation’s rapid development and the economic prosperity of various regions, GuChuan United fully understands the mission and responsibility entrusted to investment promotion work.
Moving forward, Guichuan United will continue to uphold the principles of exploration, innovation, and expansion, providing high-quality services to governments and enterprises while injecting new momentum into the sustainable development of regional economies.
