4/22/2015

Federal-Mogul to build new sealing plant in China

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By Chris Sweeney Follow Author

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. plant will double the capacity of its current sealing manufacturing operations in Nanchang. According to a company spokeswoman, the new facility will replace the existing one because it will provide a larger footprint and more advanced manufacturing capabilities.

Production is expected to begin in 2016, Federal-Mogul said. The company declined to release financial details of the new plant, but the spokeswoman said the firm expects the facility to grow to more than 500 employees in the next two years.

The spokeswoman said Federal-Mogul is expanding to meet growing demand from its Chinese original equipment manufacturers to meet more stringent environmental regulations.

“This facility will serve as one of the most advanced sealing manufacturing facilities in the world, while helping Federal-Mogul Powertrain to increase its competitiveness and market share throughout China,” the spokeswoman said by email.

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 spokeswoman said the facility will produce multi-layered steel cylinder head gaskets, exhaust manifold gaskets of high temperature alloy, heat shields, bonded pistons and its MicroTorq brand of dynamic seals, which are not currently offered in the region.

“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.”

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 powertrain 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 in 34 countries.