Xuzhou Meritor Axle invests more in China off-highway business

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Updated Feb 15, 2011

ArvinMeritor Inc. recently announced that its joint venture, Xuzhou Meritor Axle Co. Ltd., is investing an additional $17.3 million to expand its manufacturing capability and add a new 26,000-square-meter production facility. The new facility will be adjacent to XMAL’s existing 37,000-square-meter facility in Xuzhou, China.

“This significant investment reinforces our strategy to expand the off-highway business globally,” says Tim Bowes, president of Industrial and Asia Pacific, ArvinMeritor. “With this investment, we will continue to strengthen our off-highway manufacturing and engineering capabilities to meet the expectations of our growing customer base in China and expand our leadership position in this market.”

Early last year, the joint venture announced a $10 million investment. In total, the joint venture is investing $27.3 million in its off-highway business expansion in China in fiscal year 2010. “With our long history in designing and manufacturing heavy-duty axles for commercial vehicle customers and the strong off-highway capabilities we have developed in China, we will continue to invest and be well prepared for the opportunities in the Chinese market.” Bowes says.