TROY, Mich. — Truck component and systems manufacturer ArvinMeritor is looking to take advantage of a surprise boost in the European commercial transport market by expanding its capacity on the Continent.

The company’s CEO Chip McClure told Dow Jones Newswires recently that ArvinMeritor is considering acquisitions or adding capacity to meet demand in Europe.

Even as it restructures and cuts back in other markets — mainly in North America — the company sees sustained growth in “lower cost regions” of Europe over the next few years, and longer-term in Asia and South America, McClure says.

Commercial vehicles make up about 67 percent of the company’s revenue — about 30 percent of that is in Europe.

In a shift from past years, Eastern European truck buyers want the latest truck technology and not pre-owned equipment, McClure said. The additional demand has caused suppliers to ramp up to meet the orders, he adds.

On this side of the pond, the truck makers are experiencing a 30 to 40 percent drop from 2006 — the height of the so-called “pre-buy” where buyers scrambled to fill order books with existing equipment ahead of more expensive, EPA-mandated engines that took affect Jan. ’07.

Similar emission rules kicked-in for Europe in 2006, McClure noted, but the downturn was short-lived because of the demand from eastern countries.

The company is in the middle of a restructuring program that affects more than a dozen plants. Last month ArvinMeritor said it would shutter a Commercial Vehicle Systems assembly operation in St. Thomas, Ont. by November.

After boosting its market share in the commercial vehicle emissions solutions industry, the company announced in February it was selling its Emissions Technologies business to New York-based equity investment firm for about $310 million.

At the time, McClure said the decision to sell the growing division was part of a long-term strategy to concentrate on “strengths and core competencies” such as chassis, drivetrain, and vehicle safety in light-duty and commercial markets.

— with files from Dow Jones Newswires