MAUMEE, Ohio -- Dana Holding Corp. has signed a definitive agreement with Axles India Ltd. (AIL), to acquire select assets of AIL's commercial truck axle business.

Under terms of the agreement, Dana will assume full ownership of AIL's axle drive head and final axle-assembly operations. (The axle drive head includes the pinion, ring gear, differential lock, bearings, lube pump and yoke inside the axle housing.) Dana will also assume responsibility for the marketing, sales and engineering of these medium- and heavy-duty axles. AIL, which is a joint venture between Dana and two India-based companies, will continue to manufacture axle housings for Dana and other customers.

"This agreement further extends our capabilities and operations in another rapidly growing market," said Mark Wallace, president of Dana's Heavy Vehicle Products Group. "With the compound annual growth rate of India's commercial vehicle market at 8 percent, we have high expectations for this investment."

Added Dana's Managing Director of India BD Singh, "Dana's recognized manufacturing and engineering leadership will be a key advantage in growing this business. Introducing lean manufacturing and applying Dana's product engineering experience will benefit all of our customers."

Key customers of this business are Ashok Leyland and Mahindra & Mahindra.

Closing of the transaction, expected to be completed in the second quarter of this year, is subject to government regulatory approvals and customary closing conditions.

Dana's $13 million investment in this transaction is expected to generate approximately $50 million in annual revenue.

Dana also broke ground in December on a new $20 million technical center in Pune, India, which will support commercial vehicle customers, as well as automotive and off-highway vehicle manufacturers.