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January 27, 2023

America’s Federal-Mogul earmarks USD 20 M for plant expansion in Romania

Federal-Mogul is investing over USD 20 M in order to install two new production lines at its disc brake plant in Ploiesti, a plant taken over from Honeywell as part of the takeover of Honeywell’s brake systems division.
“We have 271 employees and we expect their number to grow to approximately 340 by the end of next year. Currently we are working on installing the third line, for personal vehicles, and the fourth line, for commercial vehicles, will be installed in 2015,” Neville Rudd, Federal-Mogul’s global facturing vice president, stated on Wednesday at a press conference.
The plant became operational in November 2012 and currently has two production lines.
Rudd stated that the drawing of supplementary state aid is not expected for the installing of the two new lines, and the accessing of the state aid already approved depends on a series of criteria such as investments, number of employees and production level, the goals established set to be fulfilled or surpassed.
“After the production capacity in Ploiesti is used in full we will analyze its expansion, but of course that also depends on the situation on the market,” the Federal-Mogul representative added.
The two American industrial groups announced at the start of this year that Federal-Mogul will take over Honeywell’s auto brake systems division, the transaction worth approximately USD 155 M also including the disc brake plant in Ploiesti.
The transaction, which concerned the operations in Europe, China and Brazil, not those in the US, was finalized in mid-2014.
With annual turnover of USD 6.8 bln, the Federal-Mogul Holdings Corporation is a global supplier of products and services for clients in the auto sector and in other industrial segments.

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