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Federal-Mogul to Build New Manufacturing Facility in India at Chennai Print E-mail
Written by Anand   
Friday, 08 August 2008
Southfield, Michigan / Chennai: Federal-Mogul Corporation (NASDAQ:FDML) today announced it is planning to build a new facility in Chennai, India, for the manufacture of friction components for Original Equipment and Aftermarket segments. The operation is scheduled to begin production of light vehicle brake and friction components, commercial vehicle and railway friction products by September 2009.

Federal-Mogul currently manufactures products at six operations in India, including pistons, rings, liners, bearings, ignition and sintered products for both OE and Aftermarket customers.

The locations are in Bangalore, Bhiwadi (2), Khandsa, Parwanoo and Patiala. Federal-Mogul's Ferodo® friction products have been manufactured in India since 1995, although the new friction facility will be the first in the Chennai region.

Federal-Mogul's wholly-owned subsidiary in India recently signed a memorandum of understanding with New Chennai Township Pvt. Ltd., a subsidiary of MARG Ltd., a major Indian development company to buy 10 acres of land on which it will build the 6,000-square-meter facility. The plant will be built in three phases and will eventually total 15,000 square meters and create approximately 500 jobs.

"This new greenfield facility is another example of Federal-Mogul's commitment to grow its manufacturing footprint in India," said Federal-Mogul President and Chief Executive Officer José Maria Alapont. "Products manufactured at the new facility will be for both local vehicle manufacturers and for export to the global automotive market."

"We are the leader in supplying Ferodo brand vehicle brake friction components and we continue to experience excellent opportunities for global growth. We are pleased to expand our presence in India, one of the world's most exciting and dynamic economies. This new facility in Chennai is an investment to deepen and diversify our presence in India in support of market growth, and further demonstrates our commitment to our sustainable global profitable growth strategy," Alapont continued.

Federal-Mogul Vehicle Safety and Protection

Federal-Mogul supplies systems protection products and is one of the world's largest suppliers of friction materials. Both the systems protection products and the friction products are used in the automotive, heavy-duty, motorcycle, railway and consumer products markets. The primary products include brake disc pads, brake shoes, brake linings and blocks. Federal-Mogul offers a portfolio of world-class brand names, including Abex®, Beral®, Ferodo®, ThermoQuiet® and Wagner®. Federal-Mogul supplies friction and systems protection products to all major customers in the light vehicle, commercial vehicle and railway sectors and is also a leading company in the aftermarket.

About Federal-Mogul

Federal-Mogul Corporation is a leading global supplier of powertrain and safety technologies, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, industrial, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. The company's leading technology and innovation, lean manufacturing expertise, as well as marketing and distribution deliver world-class products, brands and services with quality excellence at a competitive cost. Federal-Mogul is focused on its sustainable global profitable growth strategy, creating value and satisfaction for its customers, shareholders and employees. Federal-Mogul was founded in Detroit in 1899. The company is headquartered in Southfield, Michigan, and employs 50,000 people in 35 countries.

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