ArvinMeritor has announced that it plans to close its Light Vehicle Systems (LVS) shock absorber assembly operation in Pulaski, Tenn., U.S. The company will transfer a portion of the production to its Detroit, Mich., U.S., and Toronto, Ont., Canada facilities, with remaining business being phased out by July 2006.

The company met with employees today to discuss the transfer and closure plans, which will affect all 268 employees.

"As announced in our second-quarter earnings release, ArvinMeritor identified the need to rationalize 11 sites, to further focus its businesses on serving customer needs and improve its return on invested capital," said Sidney Del Gaudio, vice president and general manager of LVS Undercarriage Systems.

"Pulaski was one of the 11 sites chosen because its overall costs exceeded the short- and long-term returns required to sustain the business and remain competitive."