ArvinMeritor Plans New Axle Manufacturing Plant in Brazil

$10-Million project to support new MAN truck complex

Auto parts manufacturer ArvinMeritor Inc. reports it will invest an estimated $10 million in a new plant in Resende, Brazil, near Rio de Janeiro, to produce axles for truck builder MAN S.E. "This initiative is aligned with our objectives to reinforce the ArvinMeritor brand as a strong player in global commercial vehicle markets," said Silvio Barros, director of marketing and sales for ArvinMeritor in South America.

Presently, ArvinMeritor manufactures and supplies front steering axles, single- and tandem- drive axles, and bus axles (low floor and entry platforms) for original equipment vehicle manufacturers in South America. Later this year it will begin producing drivelines at Osasco, Brazil.

Through its joint ventures with Freios Master and Suspensys, ArvinMeritor supplies drum brakes, hubs, trailer and truck suspensions and trailer axles.

MAN is investing approximately $50 million to establish a supplier park at the industrial complex at Resende, where it produces trucks. Along with ArvinMeritor, Suspensys and Maxion will have plants in the complex.

MAN will begin producing TGS/X trucks at Resened for the Brazilian market in 2012. The supplier consortium there will be operational in 2011. Initially, trucks will be assembled from SKD kits imported from Germany with the medium-term objective of 60 percent local content.

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