Drivetrain specialist supplier ArvinMeritor has officially opened a new US$30m manufacturing facility in Cienega de Flores, an industrial city in northern Mexico.
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The new plant is a component production operation offering greater efficiencies and higher quality.
The 400,000-square-foot facility, which was completed in just nine months, will eventually employ 500 people but currently has 146 staff.
“We are making a significant investment in our production capacity and our capabilities to support our customers’ needs,” said Carsten Reinhardt, president, Commercial Vehicle Systems (CVS), at ArvinMeritor.
“We have designed this facility – the first, all-new commercial axle manufacturing plant in 19 years – with a variety of breakthrough technologies, which will help establish a world-class capability in gear-cutting and axle assembly.
“It will also provide a competitive edge by increasing our production capacity, enhancing the quality performance, and giving us greater flexibility in the manufacturing processes,” added Reinhardt.
Initially, the plant will produce bevel gearing and front non-drive steer axle assemblies for US and Canadian truck OEM assembly plants.
The components also will support other US-based ArvinMeritor assembly sites. The facility will provide the infrastructure to support targeted growth areas in off-highway components and the commercial vehicle aftermarket.
ArvinMeritor’s commercial vehicle business also supplies customers from its aftermarket warehouse and distribution center in nearby Escobedo. A long-standing joint venture, Sistemas Automotrices de Mexico (Sisamex), also in Monterrey, manufactures axles, brakes and drivelines primarily for Mexico.
The company’s light vehicle operations also have production facilities in Queretaro, Puebla and San Luis Potosi.
