BEIJING, Jan. 22 /PRNewswire-Asia/ -- ArvinMeritor (NYSE: ARM) announced the investment of nearly $10 million in Xuzhou Meritor Axles Limited (XMAL), a 60/40 joint venture partnership between ArvinMeritor and XCMG, located in Xuzhou, China. This investment is expected to increase XMAL's overall annual production capacity by more than 20 percent and upgrade the plant's manufacturing technology to world-class standards.
"This significant investment reinforces ArvinMeritor's strategy to expand our off-highway business globally as well as our company's strong long-term commitment to China and the Asia Pacific region," said Tim Bowes, president of Industrial and Asia Pacific.
"The investment we are making in XMAL is the first phase of a long-term strategic development plan that is expected to help us improve our off-highway manufacturing and product capabilities in China as well as support our efforts to grow this business in one of the largest off-highway markets in the world," Bowes said.
The growth in China's off-highway market is primarily due to the high demand for construction machinery under its fast growing economy and the government's recent $586 billion USD stimulus package in the country's infrastructure.
"Off-highway and Asia Pacific, particularly China, are two key areas of our company's overall growth strategy for the future," said Bowes. "Therefore, it's our plan to continue to invest in the off-highway business in China."
About XMAL
Xuzhou Meritor Axle Co., Ltd. (XMAL), located in Jiangsu province, is a joint venture between ArvinMeritor and Xuzhou Construction Machinery Group (XCMG), the largest off-highway vehicle manufacturer in China. XMAL has been in existence since 1996, and is the largest independent off-highway axle producer in China. ArvinMeritor holds 60 percent equity share in the joint venture and XCMG holds 40 percent.
About ArvinMeritor
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor marked its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For important information about the company, visit http://arvinmeritor.com .
Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. There are risks and uncertainties relating to our ability to expand our off-highway business in China and actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions; the demand for commercial and specialty vehicles for which the company supplies products; risks inherent in operating abroad; demand for and market acceptance of new and existing products; successful development of new products; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
