NANCHANG, China—Federal-Mogul Holdings Corp.'s Powertrain Division will build a new sealing and gasket manufacturing facility in Nanchang.
The firm said the 258,000-sq.-ft. facility will double the capacity of its current sealing manufacturing operations in Nanchang in response to growing demand from Chinese original equipment manufacturers to meet stringent environmental regulations.
Production is expected to begin in 2016, Federal-Mogul said.
“China plays a pivotal role in the continued expansion of Federal-Mogul Powertrain's global footprint, with the new plant in Nanchang serving as one of the most advanced sealing manufacturing facilities in the world,” Jan Maiden, senior vice president and general manager of sealing and gaskets, said in a statement. “This investment also lays a solid foundation for further growth of Federal-Mogul Powertrain in the Chinese market and will further increase our competitiveness and market share there.”
Federal-Mogul said the sealing business in China has grown at an annual rate significantly higher than the growth rate of engine production in the past five years based on increased demand for vehicles that provide high combustion efficiency and low emissions.
The Powertrain Division opened its first Chinese sealing and gasket plant in Nanchang in 1996, which produces gaskets, heat shields, dynamic seals and hydraulic pistons. The facility's products are used in engines, transmissions and driveline systems.
Federal-Mogul Powertrain said it now operates 13 wholly owned or joint venture companies in nine Chinese locations and an Asia-Pacific Technical Center in Shanghai.
Federal-Mogul is a global supplier of products and services to the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation, and industrial markets. It operates as two independent business divisions—Federal-Mogul Powertrain, which designs and manufactures original equipment powertain components and systems protection products; and Federal-Mogul Motorsports, which sells and distributes a portfolio of products through more than 20 brands in the global vehicle aftermarket.
The firm employs nearly 50,000 people in 34 countries.