ArvinMeritor to Close Assembly Operation in Ontario

ArvinMeritor, Inc.today announced it would close its Commercial Vehicle Systems (CVS) assembly operation in St. Thomas, Ontario, Canada by Nov. 23.

The closure is part of previously announced restructuring actions in North America and Europe which the company expects to affect 13 plants and 2,800 employees, resulting in an estimated annual run rate savings of $130-$140 million by 2012.

The facility in St. Thomas employs 17 people, and serves as an assembly site of the company's drivelines. Operations based in St. Thomas will be transferred to ArvinMeritor's facility in Laurinburg, N.C.

Employees were advised of the closure today during a meeting at the facility. ArvinMeritor will offer outplacement support and severance and benefits packages to affected employees.

"Actions like these are never easy, but are necessary because of the highly competitive nature of the motor vehicle industry," said Wayne Watson, general manager, Operations, North America. "The company must have a global manufacturing footprint that optimizes capacity, reduces costs, and creates the greatest level of customer service."

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