ArvinMeritor Inc announced that it has signed a strategic partnership with Yutong Group Co Ltd to supply drivetrain components for buses and coaches in China.

In addition to supplying premium non-drive and drive axles to Yutong, ArvinMeritor will now manufacture differential carriers and brake calipers at its facility in Wuxi, China, for application on Yutong's axles. The final product will be assembled at Yutong's plant at Zhenzhou in China. Production is expected to begin at the end of 2009.

As part of this partnership, ArvinMeritor and Yutong will also sell and distribute standard aftermarket service kits for its products.

Mr Tim Bowes VP & MD of Asia Pacific for ArvinMeritor said "We are proud to partner with Yutong, the largest producer of high end buses and coaches in the China market. We believe this new business will strengthen the existing partnership we have with Yutong, as well as expand ArvinMeritor's presence in Asia."

Mr Bowes said "We will build the carriers and air disc brakes in our Wuxi plant utilizing local suppliers. We plan to continue to demonstrate our commitment to the China market by localizing the manufacturing of our products to meet the needs of our domestic customers."