SHANGHAI, China — ArvinMeritor has mapped out a plan to open a new manufacturing facility in the Far East with a $35 million investment for new equipment.
The new plant will be located in Wuxi, Jiangsu Province, China, and become the manufacturers second wholly-owned operation in the country. The 300,000 sq.-ft. facility will initially manufacture trailer axles and suspensions for key trailer manufacturers in China, as well as for export of components to North American and European plants.
Production is estimated to begin in the first half of 2007 at the new facility. Other drivetrain and brake components will be added to the operation’s portfolio, as the company continues to pursue its strategic enterprise model.
“As the country’s infrastructure improves, tractor-trailer configurations are expected to rise exponentially and we will be ready to support both current and future market needs with advanced technology,” said Sergio Carvalho, vice-president and general manager of ArvinMeritor’s Trailer Products and Suspensions business.
The company has identified local sourcing for its components, which furthers its integrated manufacturing strategy to bring all aspects of the supply chain within close proximity of the facility.
ArvinMeritor currently has four Commercial Vehicle Systems manufacturing facilities in China, with one being wholly-owned and the remaining three operating as joint venture partnerships. These locations assemble or produce axles, brakes and related components for medium- and heavy-duty trucks, off-highway and bus and coach markets, in addition to the aftermarket.
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