Federal-Mogul intends to cease operations at a factory in Avilla, Indiana, reported Inside Indiana Business.

The company said it will halt operations next October at its Avilla plant, which manufactures lighting components for the automotive industry. Around 100 employees will be affected by the decision.

The company said the move was in response to a need to improve capacity utilisation and 'changing market dynamics'.

The company also shut down a facility in Michigan City in 2012, sending the work to Mexico.