SOUTHFIELD, MI — Federal-Mogul and Sinterstahl Group have signed an agreement under which Federal-Mogul would sell its Dayton, Ohio, powdered metal operation to Sinterstahl. The agreement is subject to approval by the U.S. Bankruptcy Court and other conditions.
The Sinterstahl Group is one of the three business units of the Plansee Group, which supplies automotive OEMs and their first tier suppliers with products used in powertrain, chassis and racing applications.
The Dayton related business – with forecasted sales of approximately $10 million for 2004 – develops, manufactures and sells powdered metal automatic transmission components and fuel and oil pump gerotors for the automotive industry, as well as other powdered metal components for the appliance industry. The business currently employs 111 people.
Under the sale agreement, Sinterstahl Group would acquire the Dayton facility and related Plymouth, Mich., R&D assets, as well as all inventory. Federal-Mogul would retain all other Plymouth R&D assets, as well as its valve-train business in Waupun, Wis., and all sintered operations outside of the U.S.
According to Steve Miller, Federal-Mogul chairman interim CEO, the sale of the Dayton operation is in line with the company’s strategy to focus on its core businesses.
The company will file a motion with Delaware Bankruptcy Court for a sale hearing under Section 363 of the U.S. Bankruptcy Code. A hearing is tentatively scheduled for Dec. 2. The pending sale is expected to be completed by Dec. 31.
For more information about Federal-Mogul, go to: www.federal-mogul.com.
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