ArvinMeritor to Close Assembly Operation in St. Thomas, Ontario, Canada
Closure is Part of Restructuring Initiative Announced in Company's Second Fiscal Quarter
TROY, Mich., July 25 -- ArvinMeritor, Inc. today announced it would close its Commercial Vehicle Systems (CVS) assembly operation in St. Thomas, Ontario, Canada by Nov. 23, 2007.
The closure is part of previously announced restructuring actions in North America and Europe which the company expects to affect 13 plants and 2,800 employees, resulting in an estimated annual run rate savings of $130-$140 million by 2012.
The facility in St. Thomas employs 17 people, and serves as an assembly site of the company's drivelines. Operations based in St. Thomas will be transferred to ArvinMeritor's facility in Laurinburg, N.C.
Employees were advised of the closure today during a meeting at the facility. ArvinMeritor will offer outplacement support and severance and benefits packages to affected employees.
"Actions like these are never easy, but are necessary because of the highly competitive nature of the motor vehicle industry," said Wayne Watson, general manager, Operations, North America. "The company must have a global manufacturing footprint that optimizes capacity, reduces costs, and creates the greatest level of customer service."
Brad Ducharme, site manager at the St. Thomas facility said, "The closure of St. Thomas is in no way a reflection of our fine workforce. Our employees are talented and highly skilled individuals who have worked hard to support our customers."
About ArvinMeritor
ArvinMeritor, Inc. is a premier 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 certain aftermarkets. Headquartered in Troy, Mich., ArvinMeritor employs approximately 19,000 people in 24 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: http://www.arvinmeritor.com/.
Forward-Looking Statements
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. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. 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 cycles and 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 and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and cost of raw materials, including steel; 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 suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of the company's suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; success and timing of potential divestitures; impairment of long-lived assets, including goodwill; competitive product and pricing pressures; the amount of the company's debt; the ability of the company to continue to comply with covenants in its financing agreements; 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; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed from time to time in filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
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