ArvinMeritor Inc., Mitsubishi Steel Manufacturing to close coil springs JV in Canada

ArvinMeritor Inc. and Mitsubishi Steel Manufacturing Co. said on Thursday that their joint-venture, Meritor Systems Company (MSSC), which produces coil springs in Canada, will close by the end of the year as a result of the global crisis in the automobile industry.

The MSCC plant, located in Milton, Ontario, employs 165 workers for the manufacturing of steel torsion and stabilizer bars and coil springs for the North American passenger car and light truck markets. The company met on Thursday with union officials of the Canadian Auto Workers Local 1067 to discuss the closure plans, announcing that all 165 workers will be affected by the plant’s closure.

Gerard Anderson, president and general manager of MSSC, explained, "We are experiencing unprecedented economic pressure within the global automotive industry. This closure reflects actions we are taking to reduce fixed costs in response to significantly lower vehicle production volumes." Company officials also said that they are considering transferring work to other MSSC facilities in North America located in Chatham, Ontario, Canada and Hopkinsville, Kentucky, in the United States.

Auto parts maker Arvin Meritor and Mitsubishi Steel formed the joint venture in 1986. ArvinMeritor owns 57 percent of MSSC.