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ArvinMeritor announces two overseas ventures

ArvinMeritor, Inc.'s Commercial Vehicle Systems (CVS) business group today announced that it will provide trailer axle and suspension systems to the Spanish-based TotalTrailers-Fruehauf Group and trailer systems in a strategic alliance agreement with Shenzhen CIMC Heavy Industries Co., Ltd. (SCHI) in Shenzhen, China.

The Freuhauf contract is valued at $6 million annually and will cover a full range of products, including the ELSA 2 Disc brake. The supply contract covers the complete line of trailer platforms offered by TotalTrailers-Fruehauf. Production began in January 2004.

"TotalTrailers-Fruehauf Group is a quality organization and we are thrilled to earn this important new business," said Sergio Carvalho, vice president and general manager of Worldwide Suspension Systems, Trailer Systems and Ride Control. "Our partnership with the Spanish TotalTrailers-Fruehauf group will help increase our growing presence throughout Europe and other global markets they serve."

The China contract includes the delivery of 20,000 trailer axles per year. The agreement begins a five-year long-term global supply partnership between the two companies that will include the purchase and supply of axle systems for a period of five years from the signing date.

"This significant new business for our company is further evidence of ArvinMeritor's growing expansion into global markets," Carvalho said. "Receiving this award demonstrates that we are well-positioned to become a serious Tier 1 supplier in the Asian commercial vehicle transportation industry."

SCHI is the fully owned subsidiary of China International Marine Containers (Group) Ltd. (CIMC). CIMC is one of the first container manufacturers and Sino-foreign joint ventures in China.

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