ArvinMeritor Monday said it will open a new wholly-owned operation in Wuxi, Jiangsu Province, China, to manufacture trailer axles and suspensions for trailer manufacturers in China, as well as for export of components to North American and European plants.
The company will invest $35 million for new equipment at the 300,000 square-foot facility.
"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 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. All products are produced for export or are supplied to vehicle manufacturers in China.