Federal-Mogul Aims For Growth, Diversity Through Strategic Alliance With Detroit-Based Minority Supplier Paper Plas Inc.
SOUTHFIELD, Mich., April 2 -- Federal-Mogul Corporation today announced its first strategic alliance with a minority-owned supplier -- Paper Plas Inc., a leading Detroit-based paper packaging and conversion services company. The alliance will provide replacement engine gasket kits, focusing its marketing efforts on vehicle and equipment manufacturers that offer replacement parts in the United States.
"By combining our resources, Federal-Mogul and Paper Plas plan to become the transportation industry's preferred source for high-quality gasket kits to be used as service parts for passenger cars, light trucks, heavy vehicles and industrial equipment," said Tom Conaghan, senior vice president, sealing systems, Federal-Mogul. "Our customers will benefit from the advantage of being aligned with an experienced diversity supplier, and this alliance will help Federal-Mogul gain entry into new markets and customers."
The alliance's manufacturing operations will be based at an existing Paper Plas facility in Milwaukee, Wisconsin. Federal-Mogul will design and manufacture highly engineered gaskets for the kits at its Skokie, Illinois plant. Paper Plas will assemble and package the kits at its Milwaukee facility and distribute them to original equipment customers for use by their dealer service departments in the U.S. A typical kit will contain 30-50 gasket and sealing components required for rebuilding or replacing a specific engine section.
"This partnership is focused on distinguishing ourselves in a highly competitive market through the value of diversity and the commitment to customer service," said Donald Snider, president and chief executive officer of Paper Plas. "By aligning our resources, operational experience and market capabilities, we are providing an optimal package for our customers and an opportunity to compete for larger contracts."
Paper Plas is an award-winning minority-owned Tier I and Tier II automotive supplier of shipping paper, light packaging, paper conversions and light assembly. The company began in 1995 with DaimlerChrysler as its first major customer. Paper Plas operates an 80,000-square-foot manufacturing facility with 30 employees in Detroit, and a 43,000-square-foot facility with 25 employees in Milwaukee. Key customers include Cummins, DaimlerChrysler, Dana, FleetGuard, Mopar, PPG, Rockwell-Allen Bradley and xpedx.
Paper Plas has won numerous industry recognitions, including being named Supplier of the Year in 2000 by the National Minority Supplier Development Council and the Michigan Minority Supplier Development Council.
Founded in 1918, Federal-Mogul's Skokie facility is one of the largest gasket manufacturing and gasket kit packaging facilities in the world, occupying approximately 1 million square feet with 1,600 employees. The facility has earned customer awards from companies including Toyota, Cummins, Ford, Detroit Diesel, General Motors, Harley-Davidson, Navistar, John Deere and Mack Truck. Its major gasket kitting customers include Cummins, Mack Truck, Electromotive, DaimlerChrysler and General Motors. In addition to providing gasket kits as replacement parts to OE manufacturers, the plant supplies gasket kits for the independent aftermarket, sold under Federal- Mogul's Fel-Pro(R) and FP Diesel(R) brands.
Federal-Mogul is a global supplier of automotive components and sub- systems serving the world's original equipment manufacturers and the aftermarket. The company utilizes its engineering and materials expertise, proprietary technology, manufacturing skill, distribution flexibility and marketing power to deliver products, brands and services of value to its customers. Federal-Mogul is focused on the globalization of its teams, products and processes to bring greater opportunities for its customers and employees, and value to its constituents. Headquartered in Southfield, Michigan, Federal-Mogul was founded in Detroit in 1899 and today employs 47,000 people in 24 countries. For more information on Federal-Mogul, visit the company's Web site at http://www.federal-mogul.com/ .
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030402/DEW002http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO
PRN Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/306225.html