Automotive supplier Magna International (Aurora, Ontario / Canada; www.magna.com) has signed a deal to buy Olsa (Turin / Italy; www.olsagroup.com) for EUR 230m. The acquisition, which is expected to complete by the end of 2018, will expand the Canadian company’s lighting offer, enabling it to design, engineer and manufacture headlamps, tail lamps and other lighting products across the globe.

Olsa employs approximately 2,500 people and runs manufacturing operations in Italy, Poland, Brazil, China and Mexico. In 2017, it recorded sales of EUR 242m and key customers include Volkswagen, BMW and Daimler. John O’Hara, president of Magna Lighting, said, “Lighting represents a growth area for Magna due to increasing levels of electronics integration and a desire for automakers to differentiate their vehicles through styling.” Once the deal is completed, Magna will have a total of 11 lighting manufacturing facilities and two engineering centres globally.

Last month, the Canadian automotive supplier announced its intention to form two new joint ventures with BAIC group subsidiary Beijing Electric Vehicle (BJEV; www.bjev.com.cn) to engineer and manufacture e-vehicles for the Chinese market. The joint ventures are planning to take over an existing BAIC factory in Zhenjiang, Jiangsu, which has a capacity to manufacture up to 180,000 vehicles per year. The first vehicles are expected to be produced for 2020.

China is the world’s leading market for electric mobility. Magna says that by 2020, the number of all-electric cars in the People’s Republic is expected to reach 5m.