Meritor to Add Hot Coil Spring Line at Hopkinsville, Ky
8 March 2000
Meritor Suspension Systems Company (MSSC) to Add Hot Coil Spring Line at Hopkinsville, Ky.; Facility to Meet Increased Demand for Suspension ComponentsTROY, Mich., March 8 Meritor Automotive, Inc. will add a hot coil spring production line to its facility in Hopkinsville, Ky. The expansion will enable MSSC to meet the expected increased demand for suspension components within the next five years. The company plans to begin construction on the new line in April 2000 and expects it to be in production by June 2001. With an initial capital investment of over $13 million, and occupying a space of 25,000 square feet, the new production center will produce hot coil springs for its light vehicle OEM customers in North America. The expansion also is expected to create 42 jobs in the Hopkinsville-area within two years. Terry O'Rourke, president Meritor Light Vehicle Systems said, "We have recently been selected as a supplier for several new vehicle platforms and our customers have requested that we locate coil spring manufacturing capacity in the United States. We expect our industry-leading hot coil springs to capture an increased share of the North American market. The expansion further demonstrates our commitment to providing the industry's most comprehensive offering of suspension systems and components." Meritor chairman and CEO Larry D. Yost said: "Our hot coil spring expansion not only will help boost the economy of the Hopkinsville community with new jobs, but it will drive revenue growth for our Light Vehicle Systems business." The Hopkinsville plant currently produces stabilizer bars and torsion bars, both of which are primary elements in passenger car and light truck suspension systems. MSSC is a joint venture between Meritor and Mitsubishi Steel Manufacturing Company of Japan. It produces suspension systems and components, including coil springs, torsion bars and stabilizer bars. MSSC supplies several North American OEMs and exports to customers in Germany, Austria, Mexico, Brazil, Indonesia, Japan and the Middle East. The company has North American manufacturing facilities that are QS 9000 certified in Milton, and Chatham, Ontario, Canada, as well as Hopkinsville, Ky., in the United States and Sheffield, England. Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad range of components and systems for commercial, specialty and light vehicle OEMs and the aftermarket. Meritor consists of two businesses: Light Vehicle Systems, a major supplier of roof, door, access control and suspension systems and wheel products for passenger cars, light trucks and sport utility vehicles; and Heavy Vehicle Systems, a leading supplier of complete drivetrain systems and components for medium- and heavy-duty trucks, trailers and off-highway equipment and specialty vehicles, including military, bus and coach, and fire and rescue. Meritor World Wide Web Site Address: http://www.meritorauto.com . This news release contains statements relating to future results 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 those detailed from time to time in the company's Securities and Exchange Commission filings.