Federal-Mogul Corporation and Decoma International have signed an agreement under which Federal-Mogul would sell its original equipment (OE) moulded lighting assembly operations to Decoma International, based in Concord, Ontario, Canada.  The agreement is subject to approval by the U.S. Bankruptcy Court in Wilmington, Delaware, and other conditions.

Federal-Mogul in August 2002 announced plans to explore the sale of certain OE lighting operations to Decoma International.

Under the sale agreement, Decoma International would acquire Federal- Mogul’s OE lighting manufacturing facility in Matamoros, Mexico; a distribution centre in Brownsville, Texas; and an assembly operation in Toledo, Ohio.  Decoma International would also acquire the customer contracts and supporting manufacturing equipment at Federal-Mogul’s lighting facility in Hampton, Virginia.

The OE lighting plants to be acquired from Federal-Mogul by Decoma International have more than 400 employees and produce primarily forward lighting modules for cars and trucks.

Federal-Mogul will continue to maintain its lighting manufacturing operations in Boyertown, Pennsylvania, and Sparta, Tennessee, which produce bulbs, sealed beam and light source products to Tier 1 suppliers who in turn sell them to vehicle manufacturers.  Federal-Mogul also will maintain its Wagner Lighting products manufactured in Boyertown and Sparta, and its Zanxx lamp socket business in Avilla, Indiana.