Xuzhou Meritor Axle Co. Ltd, an off-highway joint venture of Meritor Inc. and Xuzhou Construction Machinery Group, recently hosted a grand ceremony in Xuzhou, China, to celebrate the 15-year anniversary of its partnership. Representatives of both parent companies including Yong Yang, vice president of XCMG, and Pedro Ferro, president of Meritor’s Industrial segment, attended this event, in addition to local government officials and about 200 XMAL employees.
Currently, XMAL is the largest independent off-highway axle producer in China. Soma axle, the core product of XMAL, was awarded the title of Famous Brand of Jiangsu Province in 2010. In addition, XMAL received the recognition of High-Tech Enterprise by Jiangsu Province Science and Technology Department in 2011.
“XMAL grew rapidly through continuous efforts in production and manufacturing innovation during the past 15 years,” says Yong Yang, vice president of XCMG. “This is not only the pride of XMAL, but also the achievements of the XMAL staff. We believe that XMAL’s 15-year anniversary will be a new starting point in its growth as we continue to strengthen our capabilities in engineering innovation and manufacturing, and lead the development trend of drivetrain components for the China off-highway market.”
In November 2010, XMAL announced an investment of $17.3 million to expand its manufacturing capability and add a new 26,000-square-meter production facility. This new facility is expected to be in full operation in April 2012. XMAL made a total investment of $27.3 million in 2010.
“With a long history of expertise in designing and manufacturing heavy-duty axles for commercial vehicle customers, Meritor will provide further support to XMAL to reinforce its engineering, manufacturing, testing and validation capability, and advance its aftersales service and talent management system,” says Pedro Ferro, president, Industrial, Meritor. “We believe this will enable XMAL to maintain its leading position in the China market by offering manufacturers and end users innovative product solutions and services.”
Meritor holds 60 percent equity share of XMAL, and XCMG holds 40 percent. The company’s monthly sales volume increased from 700 axles in 1996 when the joint venture was established to 13,000 axles in April. XMAL holds eight provincial high-tech products and 14 national patents.