ArvinMeritor’s Brazilian arm to invest USD 25 million in China

25 November 2005

Sao Paulo, Brazil, 22 Nov – The Brazilian subsidiary of US automotive parts company is to invest USD 25 million on opening a factory in China, a company president said Monday.

The location of the new alloy wheel factory and the Chinese company which will partner the move are being kept secret.

The new unit will have a production capacity of four million alloy wheels per year until the end of 2007, said the worldwide ArvinMeritor president for the passenger vehicle systems division.

Juan de La Riva said that the Brazilian subsidiary will be responsible for the project as it is currently the base for ArvinMeritor’s alloy wheel development.

“The American and European markets are saturated so we need to go after businesses that are going to grow, La Riva told Brazilian newspaper O Estado de São Paulo.

The Brazilian subsidiary, which is Brazil’s largest manufacturer of alloy wheels, manufactures 10.5 million units per year and is located in the city of Limeira, 156 kilometers northeast of Sao Paulo.

Half the production of the Brazilian subsidiary is exported to auto manufacturers in the United States, specifically General Motors, Ford and Chrysler.

The Brazilian subsidiary posted turnover of USD 642 million in the financial year ending September 2005, an 8% year-on-year increase.

The ArvinMeritor group currently ahs seven factories in China and plans to open a further two units, apart from the wheel unit planned by the Brazilian subsidiary.

The other two units in China are still in the planning stage but should manufacture sun roofs and parts for car suspensions, La Riva said. (macauhub)