ArvinMeritor, Inc. has announced the formation of a joint venture with First Auto Works (FAW) Sihuan Axle Brake Group of Changchun, China. The joint venture expands ArvinMeritor's capacity to produce commercial vehicle foundation air brakes, specifically air disc brakes and automatic slack adjusters.
The formation has been approved by both companies' boards and is pending standard governmental approvals. The joint venture contributes to ArvinMeritor remaining a premier commercial vehicle brake manufacturer, and will allow the venture to establish a new manufacturing facility in the Changchun area later this year. At the new facility, 90,000 brakes will be made annually, when it reaches nominal production levels. Components made will be for domestic markets and exports.
"Our presence and growth in the Chinese market is strategically important to grow our global brake systems business," said Thomas Gosnell, president of ArvinMeritor's Commercial Vehicle Systems business unit. "This is truly a win-win-win business arrangement: A win for end-user customers, a win for the First Auto Works Group and a win for ArvinMeritor and its shareowners."
First Auto Works was founded as China First Automobile Group Corp. in 1953 in a heavy-industry sector of the northeast part of China.
ArvinMeritor's Global Brake Systems business, led by Pedro Ferro, vice president and general manager, also maintains major brake component manufacturing and supply locations in Canada, United States, Mexico, Turkey and Brazil. Together with its Meritor WABCO Vehicle Control Systems joint venture in North America, ArvinMeritor was the first supplier to offer a comprehensive package -- its Complete Braking System. This complete offering includes foundation braking components, air compressors, air dryers, hydraulic and pneumatic anti-lock braking systems, brake control valves, electronic braking systems, and stability control systems.