Federal-Mogul Establishes New Large Bore Piston Rings Joint Venture in Changsha, China
Leading position in global industrial piston rings market is further strengthened
SHANGHAI, China, February 28, 2013.Federal-Mogul (NASDAQ:FDML) announced today that it will establish a new joint venture for large bore piston rings based in Changsha, China. The new JV, Federal-Mogul Zhengsheng (Changsha) Piston Ring Co., Ltd., will provide high technology piston rings primarily for 4-stroke industrial engines in the commercial shipping, railroad, energy and off-road industries. The new joint venture is the second Federal-Mogul large bore ring plant in China and will extend the company's product portfolio of 2-stroke and 4-stroke industrial rings in the Chinese and broader Asian markets. Completion of the transaction is subject to customary conditions, including regulatory approval of the joint venture.
"The market for leading technology and world-class large bore rings is growing as there is increasing demand for industrial engines to meet the latest emissions standards," said Weibo Weng, Vice President, Federal-Mogul (China) Co., Ltd. "This new investment is another important step for Federal-Mogul to localize the supply of globally recognized Goetze® and DAROS® large bore rings."
Occupying 25,000 sq. meters, the new joint venture is located in the Changsha Industrial and Technological Development Zone and will operate within a new facility currently being finalized. The local partner of the joint venture will incorporate its Changsha Zhengsheng Piston Ring Ltd., Corp. into the new JV. The partner will retain a minority share of the business and will remain active in supporting customer relationships and business development.
Federal-Mogul intends to upgrade production lines and to introduce new product technology, including state-of-the-art chrome-ceramic coatings, to produce low-emission, long-life, 4-stroke rings for customers in China.
High-quality piston rings are critical to ensure the smooth and efficient operation in the demanding operating conditions and multi-year duty cycles found in large bore industrial engines. Utilizing integrated global engineering and manufacturing, Federal-Mogul today provides parts and services to worldwide industrial engine manufacturers including MAN, Wärtsilä, Doosan, Mitsubishi, Caterpillar, MTU and other leading manufacturers of industrial engines.
"We look forward to providing products and services to existing customers of Changsha Zhengsheng and to further expand our product portfolio to offer a wide range of high technology piston rings to customers throughout China and Asia," Weng added. "This joint venture gives us new market access and enhances the products and services available to customers in the region."
Federal-Mogul Corporation (NASDAQ: FDML) is a leading global supplier of products and services to the world's manufacturers and servicers of vehicles and equipment in the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation and industrial markets. The company's products and services enable improved fuel economy, reduced emissions and enhanced vehicle safety.
Federal-Mogul operates two independent business segments, each with a chief executive officer reporting to Federal-Mogul's Board of Directors. Federal-Mogul's Powertrain Segment designs and manufactures original equipment powertrain components and systems protection products for automotive, heavy-duty, industrial and transport applications. Federal-Mogul's Vehicle Component Solutions Segment sells and distributes a broad portfolio of products through more than 20 of the world's most recognized brands in the global vehicle aftermarket, while also serving original equipment vehicle manufacturers with products including braking, chassis, wipers and other vehicle components. The company's aftermarket brands include ANCO® wiper blades; Champion® spark plugs, wipers and filters; AE®, Fel-Pro®, FP Diesel® Goetze®, Glyco®, Nüral®, Payen® and Sealed Power® engine products; MOOG® steering and suspension parts; and Ferodo® and Wagner® brake products.
Federal-Mogul was founded in Detroit in 1899. The company employs 45,000 people in 34 countries, and its worldwide headquarters is in Southfield, Michigan, United States. For more information, please visit www.federalmogul.com.
Forward-Looking Statements Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Federal-Mogul's most recent report to the SEC on Form 10-K, which may be revised or supplemented in subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include, among others, fluctuations in domestic or foreign vehicle production, fluctuations in the demand for vehicles containing our products, the company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, the success of the company's original equipment and aftermarket segmentation and corresponding effects and general global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statements.
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