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ArvinMeritor Forms Korean Emissions Joint Venture
New company addresses growing need for diesel
emissions solutions
DETROIT, Mich. (Aug. 29, 2005)
– ArvinMeritor, Inc. (NYSE: ARM) today 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. LVS – a market leader in the product categories it
serves – supplies integrated systems and modules to the world’s leading
passenger car and light truck OEMs. With advanced technology and systems design
expertise in apertures, undercarriage, wheel and emissions control, LVS combines
high-quality components into cost-effective, performance-based solutions for
virtually every car and light truck on the road today.
ArvinMeritor, Inc.
is a premier $8 billion global supplier of a broad range of integrated systems,
modules and components to the motor vehicle industry. The company serves light
vehicle, commercial truck, trailer and specialty original equipment
manufacturers and related aftermarkets. Headquartered in Troy, Mich.,
ArvinMeritor employs approximately 31,000 people at more than 120 manufacturing
facilities in 25 countries. ArvinMeritor common stock is traded on the New York
Stock Exchange under the ticker symbol ARM. For more information, visit the
company’s Web site at: http://www.arvinmeritor.com/.
# # #
This press release contains statements relating
to future results of the company (including certain projections and business
trends) 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, global economic and market conditions; the demand for
commercial, specialty and light vehicles for which the company supplies
products; risks inherent in operating abroad (including foreign currency
exchange rates and potential disruption of production and supply due to
terrorist attacks or acts of aggression); availability and cost of raw
materials, including steel; OEM program delays; demand for and market acceptance
of new and existing products; successful development of new products; reliance
on major OEM customers; labor relations of the company, its customers and
suppliers; the financial condition of the company’s suppliers and customers,
including potential bankruptcies; successful integration of acquired or merged
businesses; the ability to achieve the expected annual savings and synergies
from past and future business combinations; success and timing of potential
divestitures; potential impairment of long-lived assets, including goodwill;
competitive product and pricing pressures; the amount of the company’s debt; the
ability of the company to access capital markets; credit ratings of the
company’s debt; the outcome of existing and any future legal proceedings,
including any litigation with respect to environmental or asbestos-related
matters; as well as other risks and uncertainties, including, but not limited
to, those detailed from time to time in the filings of the company with the
Securities and Exchange Commission.
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