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Federal-Mogul Establishes New Large Bore Piston Ring Joint Venture in China

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Federal-Mogul has announced it will establish a new joint venture(JV) for large bore
piston rings based in Changsha, China. The new JV, called Federal-Mogul
Zhengsheng (Changsha) Piston Ring Co. Ltd., will provide high-technology
piston rings primarily for four-stroke industrial engines in the
commercial shipping, railroad, energy and off-road industries.

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Completion of the transaction is subject to customary
conditions, including regulatory approval of the joint venture.

“The market for leading technology and world-class large bore rings is
growing as there is increasing demand for industrial engines to meet the
latest emissions standards,” said Weibo Weng, vice president,
Federal-Mogul (China) Co. Ltd. “This new investment is another important
step for Federal-Mogul to localize the supply of globally recognized
Goetze and DAROS large bore rings.”

Occupying 25,000-square-meters, the new jointventure is located in the
Changsha Industrial and Technological DevelopmentZone and will operate
within a new facility currently being finalized. The local partner of
the joint venture will incorporate its Changsha ZhengshengPiston Ring
Ltd., Corp. into the new JV.  The partner will retain a minority share
of the business and will remain active in supporting customer
relationships and business development.

Federal-Mogul says it intends to upgrade production lines and introduce
new product technology, including state-of-the-art chrome-ceramic
coatings, to produce low-emission, long-life, four-stroke rings for
customers in China.

High-quality piston rings are critical to ensure the smooth and
efficient operation in the demanding operating conditions and multi-year
duty cycles found in large bore industrial engines. Utilizing
integrated global engineering and manufacturing, Federal-Mogul today
provides parts and services to worldwide industrial engine manufacturers
including MAN, Wärtsilä, Doosan, Mitsubishi, Caterpillar, MTU and other
leading manufacturers of industrial engines.

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“We look forward to providing products and services to existing
customers of Changsha Zhengsheng and to further expand our product
portfolio to offer a wide range of high-technology piston rings to
customers throughout China and Asia,” Weng added. “This joint venture
gives us new market access and enhances the products and services
available to customers in the region.”

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