ArvinMeritor announced it will close its commercial vehicle systems axle operation in Arden, N.C., by September 2008. The closure is part of a previously announced restructuring initiative in North America and Europe, an ArvinMeritor press release stated.
The company expects the closure will impact 13 plants and 2,800 employees, which will result in an estimated annual run rate savings of $130-140 million by 2012. Employees from the Arden plant will transfer to ArvinMeritor’s facility in Forest City, N.C., and the new plant in Monterrey, Mexico, which will begin in February.
The new plant will be about 400,000 square feet for manufacturing and office space. It will provide more space for ArvinMeritor’s axle and brake assembly operations and component manufacturing.