ArvinMeritor is to sell its trailer axle beam factory in Kenton, Ohio, to Sypris Solutions, a Reuters report said.
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Financial terms of the deal were not announced but ArvinMeritor expects to close the sale by the end of March, the report added.
According to Reuters, the plant employs over 200 people and ArvinMeritor said the sale is contingent upon the ratification of a new collective bargaining agreement between Sypris and members of the local union.
Sypris, of Louisville, Kentucky, will become a supplier of axle beams to ArvinMeritor’s trailer assembly facility in Frankfort, Kentucky, Reuters said.
ArvinMeritor, which recently waged an unsuccessful hostile bid for rival parts maker Dana Corp., reportedly said selling the facility will allow it to focus on its core strategy for the trailer business of producing axle-brake-suspension systems.
Sypris this month completed the purchase from Dana of a plant that makes drivetrain components, Reuters noted.
