ArvinMeritor Announces Intent to Divest Kenton, Ohio, Facility and to Place Greater Focus on Trailer Systems
TROY, Mich., Jan. 15, 2004 -- ArvinMeritor, Inc. has announced its decision, through a letter of intent, to sell its Kenton, Ohio, facility to Sypris Solutions of Louisville, Ky. The sale is anticipated to be completed by the end of March.
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The sale of the facility, which employs more than 200 persons, will allow ArvinMeritor to focus strategically within trailer products on its core processes for the design and assembly of complete systems, which consist of axles, brakes, suspension and ride control.
The prospective owner, Sypris Solutions, would become a long-term, key supplier of trailer axle beams to ArvinMeritor's trailer assembly facility in Frankfort, Ky. In recent years, ArvinMeritor has invested substantially in the Frankfort facility, focusing on quality assembly processes and production capacity expansion.
"This divestiture facilitates our long-term growth strategy for the trailer systems business, and permits us to serve and supply our valued customers with technologically advanced trailer axle-brake-suspensions systems," said Sergio Carvalho, vice president and general manager of ArvinMeritor's Braking Systems, Suspension Systems, Trailer Products and Ride Control businesses.
The transaction remains subject to the satisfactory completion of due diligence and the execution of definitive agreements. The sale of the facility is conditioned upon the ratification of a new collective bargaining agreement between Sypris Solutions and the members of the local union.
ArvinMeritor, Inc. is a premier $8-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. Headquartered in Troy, Mich., ArvinMeritor employs approximately 32,000 people at more than 150 manufacturing facilities in 27 countries. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: www.arvinmeritor.com .
This press release contains statements relating to future results of the company (including certain projections and business trends) that are "forward- looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to, global economic and market conditions; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad, including foreign currency exchange rates; potential increases in raw material costs; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its customers and suppliers; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations; competitive product and pricing pressures; the amount of the company's debt; the ability of the company to access capital markets; credit ratings of the company's debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; as well as other risks and uncertainties, including, but not limited to, those detailed from time to time in the filings of the company with the Securities and Exchange Commission.
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