ArvinMeritor makes additional investment in Brazil

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ArvinMeritor Inc. announced it will invest about $10 million to build a new axle manufacturing operation in Resende, Brazil, to support MAN’s production of trucks and buses in the region. Georg Pachta-Reyhofen, president and chief executive officer of MAN, announced investments of about $50 million to establish a supplier park in the industrial complex where the brand produces trucks. About 700 new jobs will be created to support the expansion backed by components and systems suppliers ArvinMeritor, Suspensys and Maxion.

Sílvio Barros, director of marketing and sales for ArvinMeritor in South America, says the company’s investment in the supplier park is part of its strategy to support MAN’s growth globally. “This initiative is aligned with our objectives to reinforce the ArvinMeritor brand as a strong player in the global commercial vehicle markets,” Barros says.

The supplier consortium in Resende, near Rio de Janeiro, will be operational in 2011, one year before MAN launches TGS/X trucks to the Brazilian market. Trucks initially will be assembled from SKD kits imported from Germany with the medium-term objective of 60 percent local content.