Issue: Sep 2012


Meritor Unveils Additional $16 Million Investment in European Brakes Operations



by James Hilton

Meritor, Inc. (NYSE: MTOR) today announced an incremental investment of $16 million in its European brake operations. This builds on a $42 million investment the company announced at the 2010 Hannover IAA Commercial Vehicle show to solidify its position as a global on-highway brake leader.

"We are continuing to strengthen our global brake business," said Joe Plomin, vice president, Global Brakes, Meritor. "Our Cwmbran, U.K., site is our global center of excellence for disc brakes. With the expected growth around the world for disc brake technology, we are increasing our investment to ensure we can meet the needs of our customers."

The complete investment plan focuses on the following initiatives:

-- Advanced product technology combining reduced weight, higher output and
broader application coverage
-- More in-depth product test and validation capabilities
-- Facility modernization creating a operating environment to ensure
market-leading cost, quality and safety
-- Larger customer support and manufacturing teams The initial investment led to the expansion of the successful ELSA air disc brake and S-Cam product lines, and the development of future braking technologies. At this year's IAA Commercial Vehicle show, Meritor announced the latest developments to the ELSA family of air disc brakes that demonstrated features including reduced weight, improved life and increased performance with nominal torque ratings up to 30kNm. The extended family of brakes broadens Meritor's ability to cover every vocation with more optimized product offerings.

The company's earlier investment also included vehicle and lab performance testing, validation improvements, such as a new noise, vibration and harshness and thermal imaging dynamometer. The new dynamometer is capable of testing complete corner modules, including axles, suspensions and wheel-ends. Additionally, the company purchased a new advanced three-axis vibration rig to analyze effects of vibration more accurately.

In addition, Meritor recently began an extensive modernization of the Cwmbran, Wales, site to enhance its production efficiency while achieving a greener and more environmentally friendly facility. As part of the plant's update, investments have been made in world-class manufacturing systems to improve quality and achieve zero parts per million, as well as a state-of-the-art machining and assembly operation that reduces cost and enhances safety.

Customer and manufacturing support capability, as well as the size of the product engineering team, have been significantly increased to achieve a closer relationship with customers as Meritor drives to deliver timely, leading-edge technologies to the global marketplace.

About Meritor, Inc.
Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. With more than a 100-year legacy of providing innovative products that offer superior performance, efficiency and reliability, the company serves commercial truck, trailer, off-highway, defense, specialty and aftermarket customers in more than 70 countries. Meritor is based in Troy, Mich., United States, and is made up of more than 10,000 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 19 countries. Common stock is traded on the New York Stock Exchange under the ticker symbol MTOR. For important information, visit the company's website at meritor.com

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