Federal-Mogul Set To Sell Certain U.S. Camshaft Operations

Autoparts Report, May 22, 2002

Federal-Mogul Corp. said it has signed a letter of intent to sell certain United States camshaft operations to ASIMCO, an automotive components manufacturing company based in Beijing, China, for $25.7 million.

The proposed sale is subject to approval by the U.S. Bankruptcy Court in Wilmington, Delaware, in addition to completion of due diligence and other customary conditions to closing, the company said. A hearing on the letter of intent is scheduled for May 29, 2002.

The proposed sale includes plants in Grand Haven, Michigan, and Orland, Indiana, which produce machined cast iron and steel camshafts, as well as Federal-Mogul's 80-percent share of an assembled camshaft joint venture with Nippon Piston Ring Co., Ltd. in Grand Haven, the company said.

The operations to be sold have about 500 total employees and had combined sales of approximately $80 million in 2001, according to Federal Mogul.

The letter of intent does not include a Federal-Mogul plant in Jackson, Michigan, which produces machined camshafts primarily for the automotive aftermarket, nor does it include Federal-Mogul's camshaft operations in Saltillo, Mexico; Araras, Brazil; and Lydney and Elstead, United Kingdom, the company said.