Bankrupt automotive parts maker Federal Mogul on Friday announced a three-year restructuring plan that could affect 25 facilities and reduce the company’s work force by about 10%.
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Federal Mogul, which filed for Chapter 11 protection in October 2001 to deal with asbestos liabilities from the purchase of a British company, said preliminary charges related to the restructuring are likely to be in the range of US$125 million to $150 million, according to Reuters.
The charges are likely to be recorded in the current quarter and future periods, the company reportedly said.
“Our focus for the future will be on improving our performance in mature markets and expanding in key growth markets,” CEO Jose Maria Alapont said in a statement cited by the news agency.
“While these decisions are difficult, our drive for global profitable growth is dependent on implementing strategies that continue to strengthen our competitiveness and profitability in this market environment,” he reportedly added.
Reuters noted that the Southfield, Michigan-based company also said details of the restructuring have not been finalised.
As of 31 December 2004, Federal Mogul had about 44,700 full-time employees, of which about 17,200 were employed in the United States, the report added.
