Magneti Marelli boosts purchase of auto parts in China

Shanghai. August 22 (Gasgoo.com) – Magneti Marelli announced recently it will boost the company's purchasing value in China by eight times in the coming three years. 

Helmut Rojas, purchasing director of Magneti Marelli in China region, is facing a tough task. He has to find suppliers who can offer both high quality products and competitive prices.

"We have made contacts with more than 100 suppliers in China, and one important principle is that the suppliers we are looking for should better have a diversified product portfolio and be able to provide more than one type of spare parts," said Rojas. "Currently most suppliers in China may need to spend at least three years to meet the stiff European emissions standards."

"Currently China only account for 30% of total purchasing volume, Magneti Marelli hopes to increase this figure to 50% in the near future," added him.

Magneti Marelli has five manufacturing sites in three locations in China. With an employment of 800 people, the company produces powertrain components, exhaust products, electronic systems, and automotive lighting in China.

Marelli plans to increase its China sales to about 10 percent of its global sales by 2010, but this figure does not include purchasing from China for Magneti Marelli's worldwide operation, said president and CEO Eugenio Razelli earlier this month.

The company had worldwide sales of $1.97 billion in 2006, but its China sales barely topped 100 million, accounting for less than 3 percent of its global sales. Purchase value of the company for export in China totaled EUR 25million ($ 33million) last year.

Magneti Marelli has a total of 53 plants and around 25000 workers worldwide. It is ranked 30 on the Automotive News Europe top 100 global suppliers list.