Federal-Mogul to Build New Manufacturing Facility in India

Federal-Mogul Corporation today announced it is planning to build a new facility in Chennai, India, for the manufacture of friction components for OE 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 Jose 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 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."

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