Federal Mogul Corp. (USA; Pink Sheets: FDMLQ operating under Chapter 11 bankruptcy since October 2001) said it will invest more than USD $12.7 million in its Blacksburg, Virginia engine bearing plant.

The investment will bring 71 new jobs to Blacksburg just as its St. Johns, Michigan engine bearing plant is winding down to close.

Blacksburg produces plain bearings and plated plain bearing coil stock which is exported to Federal-Mogul's other bearing plants in China, France and Germany.

Although a Montgomery County press release announced the expansion as a win in competition with F-M's remaining Michigan plant in Greenville, few believe F-M ever considered investing in Greenville before Blacksburg.

Blacksburg's additional production is due at least partly to Federal-Mogul's decision earlier this year to close the St. Johns, Michigan engine bearing plant. Some production is moving to Blacksburg, the rest is split among Greenville; Puebla, Mexico; and Shanghai, China.

article: F-M closing St. Johns engine bearing plant
Virginia Governor Tim Kaine approved $150,000 of Governor's Opportunity Fund grants, which had been in question. In addition, the Montgomery County Board of Supervisors approved an incentive package that could amount to $250,000 over the next three years -- based on job creation and capital investment goals.

The move marks somewhat of a turnaround for Blacksburg, which had endured layoffs in early 2005. Those laid off workers received Trade Readjustment Insurance payments, because they reportedly lost their jobs due to competition from import bearings or if their plant or work is relocated outside the United States.