DETROIT — ArvinMeritor, Inc. announced the formation of a 50-50 joint venture between its Light Vehicle Systems (LVS) business group and DongWon Precision Industrial Co., Ltd. The joint venture, named AD Tech Co., Ltd., will initially supply diesel particulate filters to light vehicle manufacturers in Korea facing stringent diesel emissions reduction legislation. It will also produce related exhaust system components.
“This partnership increases ArvinMeritor’s global emissions technologies footprint and also introduces our popular diesel particulate filter to a growing Korean market,” said Michael Bleidt, vice president and general manager of LVS Emissions Technologies. “We are entering the third year of our strategic alliance with DongWon. Throughout this time, we have been impressed with their strong customer relationships and determination to deliver exceptional service at a competitive cost. Together, we believe we can both grow our emissions business in Korea.”
“From this partnership, we anticipate robust business for AD Tech, based on the wide-reaching sales network and leading technology of ArvinMeritor. Also, AD Tech’s future success will be a direct result of both companies’ management expertise and creative direction,” said Lee Seok-Woo, representative director of DongWon and CEO of AD Tech. He added, “Working together, we will strive to make AD Tech a successful company.”
ArvinMeritor’s Choi Byung-Chul will serve alongside DongWon’s Lee as the joint venture’s representative directors.
DongWon, located in Asan-si, Chungnam, Korea, posted $62 million in sales during fiscal year 2004. Mufflers are the main item produced by DongWon and are supplied for all GM Daewoo Auto & Technology Co. (GMDAT) vehicle models. In 2003, DongWon established an R&D Center for exhaust system research and development. More recently, DongWon has advanced its business in China and Vietnam.
ArvinMeritor’s Light Vehicle Systems (LVS) business group posted $4.8 billion in sales during fiscal year 2004, and employs 17,000 people at 75 facilities in 23 countries.
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