In July 1995, the Redevelopment Agency and Arvin-Sango announced that the company would build a new factory in Merced to make auto parts for Toyota trucks. The RDA helped Arvin-Sango by giving a $275,000 price reduction in the Western Industrial Park property chosen by Arvin-Sango, and by fast-tracking the permit approval processes.

 In November 1995, the new 40,000 square foot plant opened, with over 40 high-quality manufacturing jobs for Merced. The California Association for Local Economic Development presented the Agency with an Award of Excellence in 1996 for work on the project.