Meritor, Inc. (NYSE: MTOR) today announced the opening of a new $36.5 million axle assembly facility at Automotive Axles, its joint venture with Kalyani Group along with a state-of-the-art research and development center in Mysore, India.
“As our global business continues to grow, the new facilities in India will support Meritor’s M2022 strategic plan to protect and grow our market-leading positions with best-in-class products and services,” said Jay Craig, CEO and president for Meritor. “They are strong assets that will position us for future growth in the region.”
The new assembly facility expands Meritor India’s production capacity by 25 percent, equipping it to better serve customers in the commercial vehicle, off-highway and defense sectors. The research and development center will focus on end-to-end testing and validation of Meritor’s domestic and global product solutions.
Meritor India’s 18-month project to expand its capacity and capabilities supports the corporation’s M2022 plan by focusing on growing revenue, enhancing profitability, maintaining manufacturing excellence and delivering customer satisfaction.
“This investment in our business and expansion of our capabilities significantly enhances our ability to support customers as our markets continue to show growth in the long term,” said Thimmaiah Napanda, vice president and managing director, India and Australia for Meritor.
Baba Kalyani, chairman, Automotive Axles, and chairman, Kalyani Group of companies which has two joint ventures with Meritor in India, added, “Strong and continued customer focus, innovation in products and processes and determination to deliver the best to customers has always been key to our success. I am confident that this milestone project will enable us to continue on this successful path as we drive toward the future.”
Meritor’s joint ventures with the Kalyani Group are Meritor Heavy Vehicle Systems (India) Ltd. that builds drivetrain solutions for heavy commercial, military and off-highway applications, and Automotive Axles Ltd., which makes drive and non-drive axles, front steer axles, specialty and defense axles as well as drum and disc brakes.
Meritor India supplies drivetrain, braking and suspension systems for on-highway, off-highway and military applications. The company recently launched a slipper-type suspension with one of the top OEMs in India and has expanded its presence into Sri Lanka, Bangladesh and Nepal. Meritor has manufacturing facilities in Mysore, Jamshedpur, Hosur and Pantnagar, as well as engineering centers in Bengaluru and Mysore and an aftermarket distribution center in Pune. More than 120 authorized distributors sell Meritor aftermarket parts in India.