Federal-Mogul Extends Its Global Base With New Joint Venture In China

2 December 1999
Federal-Mogul Extends Its Global Base With New Joint Venture In China
    SOUTHFIELD, Mich., Dec. 2 -- Federal-Mogul Corporation
and Shanghai Automotive Industry Corp. (SAIC) of China, today
announced an agreement to establish a joint venture for the manufacture of
engine bearings, bushings and thrust washers in China.  The joint venture
company will be called Federal-Mogul Shanghai Bearings Co. Ltd.  Federal-Mogul
will take a 60 percent interest in the joint venture.
    This is Federal-Mogul's sixth joint venture in China and builds on the
company's investment in automotive component companies aimed at supporting the
growing market demand.  The company is now in a position to supply friction,
ignition and sealing products as well as pistons, rings and bearings.
    Investment by the new company in SAIC's current, successful bearing
company, Shanghai HeZhong, will include the modernization and automation of
the factory, manufacturing plant and equipment.  With improvements in process
technology and material quality, the company will provide world-class quality
product for the developing Chinese and International automotive companies,
now, and into the next century.
    The joint venture will supply high quality thin wall bearings and bushings
for automotive, off-road and power generation applications.  This latest
investment follows the successful establishment of a piston ring joint venture
in China in 1996, ATG (TP Anqing Goetze Ltd.) and a piston joint venture in
1998, Federal-Mogul Qingdao Piston Co. Ltd.  It extends the group's cylinder
systems capability, having already been first in China with the capability to
supply piston and ring systems.
    "SAIC's Shanghai HeZhong Bearing Co. is China's leading automotive bearing
supplier which currently supplies the joint venture companies of two of our
key OE customers in China -- Volkswagen and General Motors," said Mike
Verwilst, senior vice president, Powertrain Systems, Federal-Mogul
Corporation.  "The new company will be in a strong position to provide a
source of high quality bearings to our other global customers."
    "I am delighted to be able to build on the success of our Shanghai bearing
operations with such an international partner," said Mr. Tang, vice president,
SAIC.  "Together we will make a great team and will be able to supply a wide
range of quality products to our current and new customers."
    Headquartered in Southfield, Michigan, Federal-Mogul is an automotive
parts manufacturer providing innovative solutions and systems to global
customers in the automotive, light truck, heavy-duty, railroad, farm and
industrial markets.  The company was founded in 1899.  Visit the company's web
site at http://www.federal-mogul.com for more information.  Federal-Mogul's
press releases are available by fax through Company News On-Call, call
800-758-5804, ext. 306225.