Bharat Forge Ltd. Acquires Federal Forge in Lansing

LANSING, Mich., June 28 -- Bharat Forge Ltd. -- India's largest manufacturer and exporter of automotive engine and suspension components -- today announced that its wholly-owned subsidiary, Bharat Forge America, Inc., has completed the acquisition of the assets of Federal Forge, Inc. Federal Forge manufactures automotive forgings and has been based in Lansing, Mich., since 1962.

"Our purchase of Federal Forge (now renamed Bharat Forge America) provides us a strategic presence in North America," said Mr. B.N. Kalyani, chairman and managing director of Bharat Forge. "Bharat Forge America can now take advantage of the technical capabilities, customer relationships and resources of its parent entity in order to provide wider capability and full service to its customers, and strengthen its own position in the American market," he added.

The 170,000-sq.ft. Federal Forge plant produces a variety of forged automotive components such as control arms, links, steering knuckles, connecting rods, and various other parts for its major customers, ZF Lemforder (for General Motors Corporation) and Goodyear Tire & Rubber Co. Its sales are approximately $60 million per year.

In February 2004, Federal Forge filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Sale of the company was concluded on the successful renegotiation of the existing UAW contract, necessary for making the facility's operations profitable. The plant employs 150 people. Bharat Forge has no plans for reducing the size of the current workforce.

Bharat Forge Ltd. has become the second largest commercial forge shop globally in less than a decade. In 2004, it acquired two forging companies, both in Germany -- one in steel and the other in aluminum forgings, with a manpower base of about 925 employees. Post acquisition Bharat Forge has invested in both the companies. It has put in place a strategy to further strengthen and grow its business through focused initiatives, which has generated additional employment.

With the largest single location forging capacity in the world, at its Pune, India plant, Bharat Forge is a leading producer of heavy truck axle, engine and chassis components for automotive applications. The company's customer base includes the world's major auto and truck makers and Tier I suppliers: General Motors, Ford, BMW, Audi, Volkswagen, DaimlerChrysler, Toyota, Scania, Iveco, ArvinMeritor, Detroit Diesel, ZF Lemforder, Wuxi Diesel-FAW, Guangxi Yuchai, Honda, Renault, Volvo, Caterpillar and Cummins, among others.

The Federal Forge acquisition will further augment Bharat Forge's forging capacity to more than 350,000 tons per year.

Bharat Forge boasts a highly skilled, motivated and productive workforce, with more than 1,000 engineers trained in state-of-the-art design and manufacturing technology. Combined with its extensive technical resources and financial strength, the company maintains very efficient manufacturing processes and offers both cost-effectiveness and speed-to-market to its customers.

About Bharat Forge Ltd.

Bharat Forge Ltd. is the flagship company of the U.S. $ 1.25 billion Kalyani Group, headquartered in Pune, India, which has significant presence in the key sectors of the Indian economy. Established in the early 1960s, Bharat Forge Ltd., today is a global corporation with 'full service supplier' capability in engine & chassis components, state-of-the-art manufacturing facilities (spread over five locations - two in India and three in Germany) and a global customer base. Acquisition of Germany's Carl Dan Peddinghaus GmbH forging operations (renamed CDP-Bharat Forge) and CDP Aluminiumtechnik Gmbh & Co. KG (renamed Bharat Forge-AT), have established a wider European market presence, a larger product offering, and a deeper penetration into the passenger car arena. As one of the most technologically advanced commercial forging companies in the world, Bharat Forge is internationally recognized for its cutting-edge technology and high-quality processes and capabilities.