Magna to buy $1 billion worth of spare parts in China in 2012

Magna International Inc, taking advantages of China's cheaper costs, plans to significantly increase its sourcing of spare parts in China by 2012.

"By 2012 we expects to purchase spare parts in China worth $1 billion to use in markets outside of this nation, " said Du Min, executive director of global purchasing at China for Magna.

Du said Magna's purchasing budget for the Chinese market has increased to $407 million in 2008 from $262 million in 2006. The Canadian auto parts supplier has procurement centers in North America, Europe as well as Asia.

General Motors Co agreed on September 10 to sell a 55 percent stake in its Opel unit to Magna and a Moscow-based bank.