Source: Globe and Mail
The Magna International Inc. plant in Newmarket, York Region., had been around since 1985, making door latches for cars, trucks and minivans. Latches take a lot of work to put together, they’re easy to package and can be easily shipped anywhere around the world, so Magna’s customers wanted the Canadian auto parts giant to open a plant in China to keep costs in check.
Magna complied with the requests and opened a latch plant in Kunshan in 2001. But it kept Dortec open as well. The boom in North American auto production in the first half of the 2000s ensured there was enough work to go around, and the plant was even able to generate higher profits than the average Magna factory.
By 2006, however, the business was being battered by soaring commodity prices and demands by the auto makers for price cuts. Executives at Magna Closures Inc., which oversees both the Newmarket and China operations, turned for help to a retired Toyota Motor Corp. vice-president to teach the company how to develop a first-rate manufacturing system.
Its turnaround holds lessons for other Magna plants as the company puts its so-called world-class manufacturing system in place at more than 300 auto parts plants around the world. Dortec is the plant Magna points to any time a chorus of “Canada can’t compete” breaks out. But the factory is also a beacon for other Canadian manufacturers that are struggling to stay competitive as they contend with a high dollar and globalization. At stake are 1.5 million jobs and the billions of dollars those jobs contribute to the economy annually.
“If you’re efficient, if you’re world class, you can compete and your customers will want to use you in high-cost countries to supply their product,” says Frank Seguin, president of Magna Closures.
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The Regional Municipality of York is located in the heart of the Greater Toronto Area and is home to 1.1 million residents and 42,000 business establishments, making it one of Canada’s largest municipalities and the second largest business centre in the Province of Ontario.
Comprised of nine local municipalities, York Region is a premier business location in Canada. The Region is home to operations of 14 Fortune 100 companies, four of Canada’s top 10 corporate R&D investors, Canada’s second largest Information & Communications Technology (ICT) cluster and global industry leaders in Life Sciences, CleanTech, Financial Services and Advanced Manufacturing.
As Canada’s fastest growing large municipality, York Region has one of the most educated and diverse workforces in North America, the lowest commercial property taxes in greater Toronto and an exceptional quality of life attracting top global talent.
York Region’s local municipalities include the City of Markham, the City of Vaughan, the Town of Richmond Hill, the Town of Newmarket, the Town of Aurora, the Town of Whitchurch-Stouffville, the Town of East Gwillimbury, the Town of Georgina and the Township of King.