(Thomson Reuters ONE via COMTEX) --Pune, India, March 10, 2015...ANAND India and Federal-Mogul Powertrain, a division of Federal-Mogul Holdings Corporation (NASDAQ: FDML), have announced that they have entered into an agreement to convert the Sealing and Piston Ring businesses of ANAND into joint venture operations. The new joint ventures will be known as Federal-Mogul Anand Sealings India Limited and Anand I-Power Limited.
In 1978, the companies began the joint operation of an engine bearings manufacturing facility in Parwanoo, Himachal Pradesh, India known, since 2008, as Federal-Mogul Bearings India Limited.
Combining Federal Mogul's state-of-the-art technology, research and development capabilities, global customer relationships and advanced manufacturing operations, with ANAND's deep access to local customers and suppliers, and expertise in human resource management and development, will ensure a bright future for the joint ventures.
"We have had a long-standing strategic partnership with ANAND India for several decades. The symbiotic relationship has helped to establish us as a leading supplier of bearings in India. This expansion into sealing products will further strengthen our position as a leading supplier of engine components in India, which is a key and growing market for us," said Andreas Kolf, Vice President and Managing Director for Federal-Mogul Powertrain, India.
Identical to the already existing Bearing joint venture, Federal-Mogul Powertrain will hold a 51 percent stake of the new sealing joint venture; ANAND, along with smaller shareholders, will own 49 percent of the operation. This sealing joint venture will be known as Federal-Mogul ANAND Sealings India Limited (gasket business). ANAND will hold more than a majority stake in the piston ring joint venture, ANAND I-Power Limited.
"This agreement will create a platform for the businesses to compete both locally and globally, and increase market share going forward," said Mahendra K Goyal, ANAND's Group President - Aftermarket and Business Group III.
# # #
Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Federal-Mogul's most recent report to the SEC on Form 10-K, which may be revised or supplemented in subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include, but are not limited to, our intent to create an independent company following the spin-off, revenue and growth expectation for the independent company or the company following the spin-off, the expectation that the spin-off will be tax free, statements regarding the leadership, resources, potential, priorities, and opportunities for the independent company and the company following a spin-off, failure to obtain regulatory approval for the spin-off or to satisfy any of the other conditions to the proposed spin-off, adverse effect on the market price of our common stock and on our operating results because of a failure to complete the proposed spin-off, negative effects of announcement or consummation of the proposed spin-off on the market price of the company's common stock, significant transaction costs and/or unknown liabilities, general economic and business conditions that affect the companies in connection with the proposed spin-off, unanticipated litigation or legal settlement expenses, changes in capital market conditions that may affect financing, the impact of the proposed spin-off on the companies' employees, customers and suppliers, future opportunities that the company's board may determine present greater potential to increase shareholder value, the ability of the companies to operate independently following the spin-off, the company's ability to successfully integrate and achieve the anticipated synergies from recent acquisitions, fluctuations in domestic or foreign vehicle production, fluctuations in the demand for vehicles containing our products, the company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, the success of the company's original equipment and aftermarket segmentation and corresponding effects and general global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statements.
Federal-Mogul Holdings Corporation (NASDAQ: FDML) is a leading global supplier of products and services to the world's manufacturers and servicers of vehicles and equipment in the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation and industrial markets. The company's products and services enable improved fuel economy, reduced emissions and enhanced vehicle safety.
Federal-Mogul operates two independent business divisions, each with a chief executive officer reporting to Federal-Mogul's Board of Directors.
Federal-Mogul Powertrain designs and manufactures original equipment powertrain components and systems protection products for automotive, heavy-duty, industrial and transport applications.
Federal-Mogul Motorparts sells and distributes a broad portfolio of products through more than 20 of the world's most recognized brands in the global vehicle aftermarket, while also serving original equipment vehicle manufacturers with products including braking, chassis, wipers and other vehicle components. The company's aftermarket brands include ANCO® wiper blades; Champion® spark plugs, wipers and filters; AE®, Fel-Pro®, FP Diesel®, Goetze®, Glyco®, Nüral®, Payen® and Sealed Power® engine products; MOOG® steering and suspension parts; and Ferodo®, Jurid® and Wagner® brake products.
Federal-Mogul was founded in Detroit in 1899 and maintains its worldwide headquarters in Southfield, Michigan. The company employs nearly 50,000 people in 34 countries. For more information, please visit www.federalmogul.com.
ANAND is among India's leading manufacturers of automotive systems and components. Anand was established in the year 1961 with Gabriel India as its first venture, the group's flagship company in Mumbai for manufacturing shock absorbers. Today, with 19 companies spread across 51 locations and eleven states of the country, Anand is the country's leading OEM supplier. The group is well known for its established and successful partnerships with a number of leading automotive component companies from around the world. Anand has a total of 21 global alliances, 14 joint ventures and seven technical collaborations, all of which stand testimony to Anand's well recognized spirit of partnership. The group firmly believes that business is 90 per cent people and takes pride in its dedicated workforce of 13,000 people. The group has pioneered number human resource practices, which have become benchmark in the industry.
Group Head - Corporate Communications, Anand Group
Federal-Mogul Powertrain Corporate Communications
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Federal-Mogul Corporation via Globenewswire