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Arvin and Kayaba form European power steering pump venture.

COLUMBUS, Ind.--(BUSINESS WIRE)--Nov. 25, 1996--Arvin Industries, Inc. (NYSE:ARV), and Kayaba Co. Ltd. of Japan have agreed to form a joint venture for the manufacture and sale of power steering pumps to European car makers. The new company, Kayaba Arvin, S.A., is based in a newly constructed plant in Pamplona, Spain, and will begin production in 1997. Kayaba will own 60 percent of the new Company's shares and Arvin 40 percent.

Kayaba is a leading producer of power steering pumps. Kayaba- designed products are lighter, more efficient and quieter than competing products. The new company will initially serve a rapidly growing European market. Historically, many smaller European vehicles have not featured power steering but recently there has been a tremendous increase in their use. It is anticipated that over 90 percent of future European vehicles will soon feature power steering pumps. Kayaba Arvin is well positioned to serve this growing market from its highly competitive Spanish manufacturing base.

In announcing the new venture, Arvin President V. William Hunt said, "Arvin is gratified that the strong ride control partnership established between Arvin and Kayaba in 1989 has provided the basis for this expansion into a new area of cooperation. Kayaba-designed pumps are the right product at the right time for European automakers. We look forward to another most successful venture with our outstanding partners at Kayaba."

The new joint venture is yet another major development in the growing relationship between Arvin and Kayaba. The companies are partners in APA/KYB, a leading producer of ride control products for the European OE market. Earlier this year, the companies announced that they will collaborate in ride control products on a global basis to serve the developing vehicle markets

Arvin Industries, Inc., is a global manufacturer of automotive components with 50 manufacturing facilities and eight technical centers located in 16 countries.

CONTACT: Arvin Industries, Inc.

John W. Brown, 812/379-3389
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Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 25, 1996
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