Federal-Mogul Building New Brake Plant in India

Will produce brake pads for light trucks, half-block linings for commercial vehicles, and industrial brake blocks

Federal-Mogul Corp. is building a new plant in Chennai, India, that will begin manufacturing brake friction products by the end of 2011, for customers producing cars, construction equipment, railroad vehicles, and industrial vehicles. Both OEM and aftermarket supply chains will be addressed.

"India is one of Federal-Mogul's strategic bases of operations for serving the fast-growing Indian automotive market in Southeast Asia and other global markets,” according to Federal-Mogul president and CEO José Maria Alapont. The company manufactures automotive powertrain and safety products for OEMs in the automotive, commercial vehicle, and numerous other markets worldwide. It has been manufacturing in India since the 1950s, and it has seven wholly owned and joint venture operations there currently.

"When we bring on-line the Chennai manufacturing facility later this year, Federal-Mogul will have the ability to manufacture our global market-leading brake friction products in every major geographic automotive market around the world, complemented by our strong base of regional technology and engineering centers supporting our brake friction customers," Alapont continued.

Initially, the new plant will produce non-asbestos organic disc brake pads for light vehicles, half-block linings for commercial vehicles, and brake blocks for railway and industrial customers. It will employ approximately 300 on a 10-acre site. Federal-Mogul said its investment in the installation would be approximately $15 million.

"The combined Indian automotive, commercial and railway markets are expected to grow on average by 14 percent per year over the next five years," stated Jean de Montlaur, president and managing director, Federal-Mogul Group of Companies - India. "The aftermarket is also rapidly growing …, resulting in new requirements for high-quality, OEM-style repair, and maintenance parts. Demand in India for technology is becoming increasingly sophisticated as the world's vehicle makers are all competing for a share of this expanding market. India is a strategic market for Federal-Mogul and we have invested in the capacity and infrastructure to maintain and grow our leadership position in India and globally."

"The new Chennai facility will help Federal-Mogul broaden its portfolio of global-leading technologies produced in India," Alapont added. "Bringing the production of new friction technologies to India supports the company's sustainable global profitable growth strategy, which is based on delivering leading high-tech and innovative solutions for improving fuel economy, reducing emissions and enhancing vehicle safety."

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