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03/07/2012
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Federal-Mogul has agreed to purchase the BERU spark plug business from BorgWarner. The transaction is pending customary closing conditions and consultations, including competition authorities.
 The purchase includes spark plug manufacturing sites at Chazelles sur Lyon, France and Neuhaus, Germany. The acquired units will add approximately $80 million annualized sales and increase Federal-Mogul's annual spark plug production capacity to more than 350 million a year. The two locations employ approximately 500 personnel.
"The spark plug is a core technology in automotive powertrains," says Rainer Jueckstock, Federal-Mogul OE Division CEO. "Spark ignition engines are forecasted to remain the dominant ignition technology for the foreseeable future and we intend to be a leader in this market."
"Spark plug innovations are key enablers to engine downsizing, turbocharging and other fuel economy and emissions reduction strategies for today and in the future," he adds. "Our developments are fundamental to increasing spark energy, improving temperature resistance, enhancing durability and reducing packaging size. We are utilizing precious metal electrode designs and specially formulated ceramic insulators to achieve smaller diameter and higher performance spark plugs to meet demanding market requirements. We believe spark plug innovations to enable greater engine efficiency, combined with strong growth forecasts for the global engine market presents an attractive long-term market opportunity for Federal-Mogul."
Federal-Mogul will integrate the acquired facilities along with related technical and commercial resources into its global ignition business, which includes the well-known Champion ignition product line. Champion is a widely recognized Federal-Mogul brand that has operated in the auto industry since 1906. The Champion brand portfolio includes spark plugs for combustion engines including small garden equipment, motorsports, automotive, commercial vehicles and industrial machinery.
Federal-Mogul today operates six manufacturing sites and three technical centers within its ignition product line at facilities in the US, China, India and Mexico. It sells spark plugs and other ignition products to several leading global automotive manufacturers and to aftermarket distributors and retail outlets in more than 90 countries.
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Author
John Challen
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