ArvinMeritor Invests US$10 Million to Expand Its Global Off-Highway Manufacturing Capabilities

BEIJING, February 1 -- ArvinMeritor announced the investment of nearly US$10 million in Xuzhou Meritor Axles Limited (XMAL), a 60/40 joint venture partnership between ArvinMeritor and XCMG, located in Xuzhou, China. This investment is expected to increase XMAL's overall annual production capacity by more than 20% and upgrade the plant's manufacturing technology to world-class standards.

"This investment reinforces ArvinMeritor's strategy to expand our off-highway business globally as well as our strong long-term commitment to China and the Asia Pacific region," said Tim Bowes, president of Industrial and Asia Pacific.

"Our investment in XMAL is the first phase of a long-term strategic development plan that is expected to help us improve our off-highway manufacturing and product capabilities in China, and support our efforts to grow this business in one of the largest off-highway markets in the world," Bowes said.

The growth in China's off-highway market is primarily due to high demand for construction machinery and the government's recent $586 billion USD stimulus package in the country's infrastructure.

"Off-highway and Asia Pacific, particularly China, are two key areas of our company's overall growth strategy for the future," said Bowes. "Therefore, it's our plan to continue to invest in the off-highway business in China."

About XMAL

Xuzhou Meritor Axle Co., Ltd. (XMAL), located in Jiangsu province, is a joint venture between ArvinMeritor and Xuzhou Construction Machinery Group (XCMG), the largest off-highway vehicle manufacturer in China. XMAL has been in existence since 1996, and is the largest independent off-highway axle producer in China. ArvinMeritor holds 60 percent equity share in the joint venture and XCMG holds 40 percent.

About ArvinMeritor

ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for the transportation and industrial sectors. The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor marked its centennial anniversary in 2009, celebrating a long history of 'forward thinking.' ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For important information about the company, visit http://arvinmeritor.com.

For more information, please contact: Media Inquiries, Linda Cummins, Tel: +1-248-435-7112, Email: linda.cummins@arvinmeritor.com; Christina Zhang, Tel: +86-158-0033-2933, Email: christina.zhang@arvinmeritor.com; Malte Raddatz, Tel: +49-175-36-38-001, Email: malte.raddatz@arvinmeritor.com