Federal-Mogul Reports Expansion of Powertrain Unit, Relocates Engine Bearing Plants in Shanghai

Federal-Mogul Powertrain, a division ofFederal-Mogul Holdings Corporation (FDML), today announced it has relocatedtwo engine bearing plants in Shanghai into one larger facility to meet thegrowing demands for its innovative powertrain solutions that enable reducedemissions and improved fuel efficiency in China.Located in the Zhoupu Zhihui Industrial Park in Shanghai, the new plant is aFederal-Mogul majority-owned joint venture with Shanghai Automotive IndustryCo. (Group) (SAIC) subsidiary Huayu Automotive Systems Co. Ltd. The companyexpects the 215,000 square-foot plant, which produces bearings, bushings andthrust washers to original equipment manufacturers, will double its currentcapacity of engine bearings for domestic Chinese customers in the next fiveyears."This new investment not only represents the company's long-term commitment tothe region's automotive manufacturers but it also brings our innovative andaward-winning IROX^® bearing product and process technology to the Chinesemarket," said Richard Llope, senior vice president and general manager,Bearings, Federal-Mogul Powertrain.  "We are grateful to our joint venturepartner and the local government for their support, which enabled a successfultransition to the new site."  The company is launching its industry-leading IROX bearing technology in thenew facility to localize production and supply for the domestic China market. The IROX polymer-coated bearing reduces vehicle fuel consumption and CO[2]emissions and enables higher mechanical loads while extending bearing life.The advanced IROX coating also addresses the lubrication challenges associatedwith frequent restarts found in stop-start downsized engines."The new state-of-the-art facility will benefit from reduced material deliverylead time and optimized production flow and logistics, enabling us to quicklyrespond to our customers' needs," said Felix Cheng, vice president and generalmanager, China and Korea, Federal-Mogul Powertrain.  "We are excited to offerour customers world-class processes and technologies."