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Freudenberg-NOK to Invest $13 Million To Expand Torsional Vibration Damper Production

20 November 1997

Freudenberg-NOK to Invest $13 Million To Expand Torsional Vibration Damper Production in Indiana

    PLYMOUTH, Mich., Nov. 20 -- To accommodate a new long-term
supply agreement with Ford Motor Co. for torsional vibration dampers
(TVDs), Freudenberg-NOK is investing $13 million in equipment and technical
infrastructure at its Ligonier, Ind. facility, according to Mehdi Ilkhani-
Pour, President of Freudenberg-NOK's Automotive Vibration Division.
    "This is the largest investment that Freudenberg-NOK has ever made for a
single customer contract," Ilkhani-Pour said.  "Clearly, this investment
demonstrates our commitment to being a valued supplier partner with our
customers, and it underscores our intent to significantly expand our NVH
(noise, vibration and harshness) business."
    According to Ilkhani-Pour, the new business represents a dramatic growth
opportunity that will propel Freudenberg-NOK to North America's No. 2 TVD
supplier.  TVDs are components that absorb the vibrations of the engine
crankshaft, accommodate accessory drives and help to improve NVH
characteristics of the vehicle.
    The North American contract covers various engines ranging from six to 10
cylinders.  Production is slated to begin in the first quarter of 1998 and
ramp up through the first quarter of 1999.
     To accommodate the new TVD business -- which will create about 80 new
jobs and require approximately 40,000 square feet of additional space --
Freudenberg-NOK decided to expand its 125,000-square-foot Ligonier facility,
despite available floor space at its Manchester, N.H. facility.
    "The receptiveness of the State of Indiana -- both at the local and state
levels -- to provide Freudenberg-NOK with reasonable incentive commitments
reinforced our strategic selection of the Ligonier site for this substantial
business expansion," Ilkhani-Pour said.  "We are confident that our decision
will provide Freudenberg-NOK and the State of Indiana with a win-win
scenario."
    In addition, he said the Ligonier facility offers excellence in
manufacturing, a commitment to providing world-class quality products and
services, and proven success with lean systems and other on-going continuous
improvement efforts, including earning QS-9000 certification.
    Freudenberg-NOK's Ligonier manufacturing facility, which has two
production plants, houses the company's TVD and Engine Mount Lead Centers.
The facility employs approximately 345 associates and produces TVDs and engine
mounts.  Current major customers include Ford, Chrysler, BMW, Honda and
Nissan.
    Plymouth, Mich.-based Freudenberg-NOK is part of the Freudenberg and NOK
Group Companies, which have total annual sales of more than $6 billion.  With
global automotive sales for 1997 expected to exceed $3.2 billion, the
Freudenberg and NOK Group ranks among the world's top 25 independent
automotive suppliers.
    Through a global network of automotive facilities spanning 24 countries
with some 21,500 employees worldwide, the supplier group offers its automotive
customers globally integrated products, including total sealing packages for
engines, transmissions and brakes, NVH components and modules, and all rubber,
plastic and PTFE components for suspension, steering, electrical and fuel
systems.
    The Freudenberg and NOK Group also offers an extensive portfolio of
precision-molded products for the aerospace, appliance, business machine,
fluid power, marine, medical, off-highway equipment and recreational vehicle
markets.  For more information, visit the Freudenberg-NOK web site on the
Internet at http://www.freudenberg-nok.com.

SOURCE  Freudenberg-NOK