Joint venture to offer aftermarket parts in South America
Sep 1, 2002 12:00 PM
ArvinMeritor Inc of Troy MI has announced a joint venture agreement with Randon Participacoes of Caxias do Sul, Brazil, to develop, manufacture, and sell truck and trailer components to be marketed in South America. Under the agreement, Suspensys, previously a division of Randon, will become a 50/50 partnership between ArvinMeritor and Randon.
Randon, a conglomerate of companies specializing in numerous markets in Latin America, holds core competencies in the manufacturing of road equipment and specialty vehicles, as well as automotive systems and components.
Since 1986, ArvinMeritor and Randon have been joint venture partners in Master Sistemas Automotivos Limitada. Master, also based in Caxias do Sul, is chartered to manufacture, assemble, and market on-highway heavy vehicle brakes.
The new joint venture, Suspensys, will focus on truck suspensions, trailer axles and suspensions, and related wheel-end equipment. It will combine ArvinMeritor product technology with Randon manufacturing and operations expertise. Suspensys will have its own sales and marketing organization.
A 174,000-square-foot manufacturing facility in Caxias do Sul is under construction specifically for the Suspensys products, and will be completed in November 2002.
Initially, the joint venture will produce truck and trailer suspensions and trailer axles for two vehicle OEMs and various trailer OEMs, as well as hubs and drums for one vehicle maker.
