TROY, MI — ArvinMeritor has announced plans to sell its Kenton, Ohio, trailer systems business to Louisville, Ky.-based Solutions.
ArvinMeritor said the sale of the facility, which employs more than 200 people, will allow the company to focus strategically within trailer products on its core processes for the design and assembly of complete systems, which consist of axles, brakes, suspension and ride control.
Once the transaction is complete, Sypris Solutions would become a long-term, key supplier of trailer axle beams to ArvinMeritor’s trailer assembly facility in Frankfort, Ky. In recent years, ArvinMeritor has invested substantially in the Frankfort facility, focusing on quality assembly processes and production capacity expansion.
“This divestiture facilitates our long-term growth strategy for the trailer systems business, and permits us to serve and supply our valued customers with technologically advanced trailer axle-brake-suspensions systems,” said Sergio Carvalho, vice president and general manager of ArvinMeritor’s braking systems, suspension systems, trailer products and ride control businesses.
The transaction remains subject to the satisfactory completion of due diligence and the execution of definitive agreements. The sale of the facility is conditioned upon the ratification of a new collective bargaining agreement between Sypris Solutions and the members of the local union. The sale is expected to be completed by the end of March.
For more information about ArvinMeritor, go to: www.arvinmeritor.com.
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