Federal-Mogul Corporation (OTCBB:FDMLQ) announced today
the acquisition of additional shares to own the majority stake of its
long-standing joint venture, Goetze (India) Limited (GIL), a publicly
traded leading supplier of automotive pistons, rings, liners, pins and
sintered products. The transaction, which increases Federal-Mogul's
share in GIL to 50.1 percent, supports the Company's growth strategy
by expanding its presence in India, a key market for its global
automotive products and aftermarket business.
"Federal-Mogul's increased investment in GIL is a key part of our
strategy to drive global profitable growth by providing our leading
technology, and world-class quality products and services in India,
one of the most dynamic and growing economies of the world," said
Federal-Mogul Chairman, President and Chief Executive Officer Jose
Maria Alapont. "Developing best-cost capabilities and increasing our
manufacturing footprint in India will enable us to better serve both
new and existing customers in domestic and global markets."
Headquartered in New Delhi, Federal-Mogul's GIL business has three
operations in India - located in Patiala, Bangalore and Bhiwadi - with
nearly 5,000 employees. The Indian market leader in pistons and piston
rings, GIL supplies all major Indian original equipment manufacturers
in the automotive, heavy-duty, motorcycle, industrial and agricultural
markets, in addition to a variety of aftermarket customers. GIL's 2005
net sales exceeded Rs 4.3 billion (more than $96.8 million USD at an
exchange rate of 44.4 INR/USD).
"Federal-Mogul's technology, global manufacturing, and
distribution expertise, combined with GIL's high-quality, best-cost
capabilities, result in a world-class automotive supplier with
significant opportunities for future market and product development,"
said GIL's Non-Executive Chairman Anil Nanda. He added,
"Federal-Mogul's investment in GIL recognizes the commitment of the
employees and the market leading products they manufacture."
Federal-Mogul's other businesses in India include a wholly-owned
Champion(R) brand ignition manufacturer and other joint ventures
supplying powertrain products. These businesses, including GIL, employ
nearly 7,000 people in India.
About Federal-Mogul
Federal-Mogul is a global supplier of automotive components,
modules and systems serving the world's original equipment
manufacturers and the aftermarket industry. The company utilizes its
engineering and materials expertise, proprietary technology,
manufacturing skill, distribution flexibility and marketing power to
deliver quality products and services, and leading brands.
Federal-Mogul is focused on driving global profitable growth and
creating value to satisfy customer, employee and stakeholder
expectations.
Headquartered in Southfield, Michigan, the Company, which reported
sales of $6.3 billion in 2005, employs 42,000 people worldwide.
Federal-Mogul was founded in Detroit in 1899. The Company's principal
customers include many of the world's foremost original equipment
manufacturers of automotive, light commercial, heavy-duty truck,
agricultural, marine, rail and industrial vehicles and equipment as
well as the worldwide aftermarket.
Federal-Mogul's products are sold under a variety of power brands,
including but not limited to, AE(R) engine products, ANCO(R) wipers,
Champion(R) spark plugs and wipers, Fel-Pro(R) gaskets, Ferodo(R)
brake pads, Glyco(R) bearings, Goetze(R) piston rings, Moog(R) chassis
products, National(R) wheel-end components, Nural(R) pistons, Payen(R)
gaskets, Sealed Power(R) engine products and Wagner(R) lighting and
brake products.
For more information on Federal-Mogul, visit the company's Web
site at http://www.federal-mogul.com.
Note to Editors: There should be an accent symbol over the "e" in
"Jose" above. Also, there should be an umlaut over the "u" in "Nural"
above.
