Canadian Firm Will Not Disclose Plans for Norfolk, Va.-Area Car Parts Maker

Autoparts Report, Oct 3, 2002

The prospective buyer of one of Hampton Roads' largest makers of auto parts says the plant would fit well in its portfolio, but will not disclose specific plans for the facility. Decoma International Inc. of Concord, Ontario, has agreed to pay up to $31 million in cash, liabilities and purchased inventory for Federal-Mogul Corp.'s automobile-lighting unit, which operates a plant in Hampton, Virginia.

The factory employs about 300 workers, and makes headlamps and other vehicle light fixtures. Federal-Mogul, based in Southfield, Mich., is operating under federal bankruptcy protection. The company filed for Chapter 11 last year after the number of asbestos lawsuits it faced increased and parts sales fell. The filing allows the company protection from creditors while it tries to reorganize.

Decoma officials declined to comment on possible employment or other plans for the Hampton factory, pending an evaluation of Federal-Mogul's lighting operations. But they said lighting is key to their automotive-exterior parts business, and the Hampton plant dovetails with that business. "Obviously, our strategy is to grow" in automotive lighting, said chief financial officer S. Randall Smallbone. "It's one of our growth drivers."

Decoma makes vehicle components including bumpers, body panels and exterior trim. Last September, the company also entered the lighting business with the $7.7 million purchase of Autosystems Manufacturing Inc., an automotive-lighting manufacturer based in Belleville, Ont. Autosystems, which employs about 400 workers, supplies General Motors and Visteon Corp.

The Hampton automotive-lighting plant was opened in 1990 by Cooper Automotive/Wagner Lighting. Federal-Mogul purchased the facility in 1998. Federal-Mogul also operates a brake-parts factory in Winchester with about 860 workers. That facility is not up for sale.