- Company Strengthens its Position in the Russian Automotive Market
Federal-Mogul (NASDAQ: FDML) today announced that its foreign subsidiary, Federal-Mogul Investments, B.V., entered into a definitive agreement to purchase the DZV Bearings Company, a privately held business located in Dimitrovgrad, Russia. The transaction is subject to customary closing conditions and approvals from regulatory authorities and is expected to close by year-end, or early in the first quarter of 2014. DZV is a respected manufacturer of engine bearings, bushings and thrust washers. It serves several leading Russian original equipment commercial vehicle and industrial engine manufacturers. DZV also supplies the commercial engine repair market. The company employs 375 associates.
“The acquisition of DZV will expand Federal-Mogul’s strong global position in the engine bearings market and provides an excellent growth platform to increase our presence in the commercial vehicle and industrial engine market in Russia, Central and Eastern Europe,” said Richard Llope, senior vice president, Bearings for Federal-Mogul.
Federal-Mogul’s Powertrain unit today operates in Russia a plant in Naberezhnye Chelny producing pistons, piston rings and liners and a plant in Togliatti producing pistons.
Forward-Looking Statements
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, among others, 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.
