(Adds details of the deal, background)
CHICAGO, Jan 15 (Reuters) - Auto parts maker ArvinMeritor Inc. said on Thursday it intends to sell its trailer axle beam factory in Kenton, Ohio, to Sypris Solutions Inc.
Financial terms of the deal were not announced. ArvinMeritor expects to close the sale by the end of March.
The plant employs more than 200 people. ArvinMeritor, based in Troy, Michigan, said the sale is contingent upon the ratification of a new collective bargaining agreement between Sypris and members of the local union.
Sypris, based in Louisville, Kentucky, will become a supplier of axle beams to ArvinMeritor's trailer assembly facility in Frankfort, Kentucky.
ArvinMeritor, which recently waged an unsuccessful hostile bid for rival parts maker Dana Corp. , said selling the facility will allow it to focus on its core strategy for the trailer business of producing axle-brake-suspension systems.
Sypris earlier this month completed the purchase from Dana of a plant that makes drivetrain components.