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The eBearing News
March 4, 2005


Federal-Mogul Plans New Engine Bearing
Factory in India
copyright © 2005 eBearing Inc.

Goetze India Ltd. (India) indicated it will continue to grow its sourcing relationship with Federal-Mogul Corp. (USA), including building a new engine bearing manufacturing facility in India. Federal-Mogul owns approximately 26% of Goetze India.

Already in the process of expanding and upgrading its piston and piston ring manufacturing facilities in Patiala and Bangalore, Goetze is expecting even more orders from Federal-Mogul for that product line in the coming months and years.

Goetze and F-M recently established a technology transfer relationship, with Goetze and F-M now working more closely to develop and implement advanced production technologies for pistons and rings.

In addition to pistons and rings, however, F-M engine bearings have now been added to that product mix.

Federal-Mogul is a key supplier of engine OEM and aftermarket engine bearings worldwide, and has been since the early 1900's when it manufactured babbitt journal bearing metals as Muzzy-Lyon Corp. The company developed shell bearings in mid-1900's.

Goetze and F-M have not indicated the bearing brand which might be produced by Goetze in India. However, sources in India told eBearing that Goetze will likely produce Glyco brand bearings.

F-M's Glyco brand bearings are well positioned. Each year, Glyco plain bearings are installed as original equipment on more than 10 million vehicles and maritime and stationary engines, as well as on agricultural and construction equipment. For example, Glyco sputter engine bearings are OEM from Audi, BMW, Citroen, DAF, Ford, Mercedes, MAN, Opel/Vauxhall, Peugeot, Rover, Volkswagen and Volvo. The company also has a strong proportion of aftermarket engine bearing sales.

Currently, Glyco bearings are manufactured in Stadtallendorf and Wiesbaden, Germany, via its acquisition of Glyco AG in mid-1990.. Adding low-cost production in India via Goetze would allow Federal-Mogul to become more cost competitive in the Glyco line, not only for its existing customer base but also to win new customers in India, Asia and elsewhere.

If the engine bearing line is not Glyco branded, however, sourcing from India still adds many cost and location advantages to its existing group of bearing manufacturing facilities worldwide.

The Goetze engine bearing plant, which would supply Federal-Mogul exclusively, is still in the planning stages. But it is far enough along that Goetze executives have commented publicly about it.

Anil Nanda, Chairman & Managing Director of Goetze India Ltd., said, "We should be able to introduce bearings in about a year's time. Initially, we would be importing 50% of our requirement from our partner Federal-Mogul. Setting up a bearings unit would require an investment of about Rs 35-40 crore."

Goetze would build the bearing manufacturing plant alongside an existing powder metal facility in Bhiwadi.

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- by Bruce A. Carr
from individual research,
tips and commercial sources.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.