Federal-Mogul Corporation begins production of PM powertrain components in Araras, Brazil

Federal-Mogul Corporation (NASDAQ: FDML) recently produced the first pistons from a state-of-the-art manufacturing line at its new Powertrain Energy business segment facility in Araras, Brazil. The 10,300-square-meter “Greenfield” facility produces powder metallurgy (PM) components pistons, camshafts, and valve seats and guides for several leading vehicle manufacturers.

The new Araras facility recently marked a significant milestone when it shipped the first pistons to customers, four weeks ahead of the planned shipment date. “We are pleased to provide our customers with this new capacity and product technology,” said Rainer Jueckstock, senior vice president, Powertrain Energy. “New product technology and manufacturing capacity were required to respond to market growth and customer programs in Brazil.”

The facility was built to accommodate a high-tech piston line and relocation of the camshaft, and valve seats and guides operations from a former facility in Araras. A second piston line is expected to be in operation by the end of 2008. Federal-Mogul has received several new piston business bookings from market-leading vehicle manufacturers as a result of bringing the new manufacturing facility into operation. The Araras facility is Federal-Mogul’s sixth facility in South America.

This new investment in Brazil further demonstrates Federal-Mogul’s commitment to its sustainable global profitable growth strategy, positioning itself to participate in high growth emerging markets. “The global market is an integral part of our strategy for long-term success and profitability. We are diligently working to develop business growth in key areas of the world, such as in South America, China, India and Russia, while strengthening our market leadership in Europe and North America,” said Federal-Mogul President and Chief Executive Officer Jose Maria Alapont.