ArvinMeritor on Friday, Sept. 7, announced plans to consolidate its three North American ride control facilities into one, including the closure of its original equipment shock absorber operation in Toronto, Ontario, and its packaging and distribution center in Chickasha, Okla. The 700-person closure is part of a previously announced restructuring plan affecting 2,800 employees from 13 North American and European plants.
“The company must operate from a global manufacturing footprint that optimizes capacity and reduces costs, while creating the highest levels of service and value for our customers,” says Ed Frutig, vice president and general manager of chassis systems for Troy, Mich.-based ArvinMeritor. “Our site closures are in no way a reflection of our dedicated work force. Our talented and highly-skilled employees have consistently delivered quality products for our customers.”
A majority of the shock absorber production will be transferred from Toronto to Queretaro, Mexico, by June 2008, with an anticipated closure by June 2009. The Chickasha site will move its packaging and distribution business to a U.S.-based third-party logistics company by April 2008. ArvinMeritor will offer severance and benefits packages to affected employees, who were advised of the closure plans Friday during a series of meetings.