Fras-le and Federal-mogul motorparts form joint venture

Fras-le a Randon Company (BOVESPA: FRAS), a manufacturer of friction material products, and Federal-Mogul Motorparts, a global manufacturer and distributor of quality automotive parts, today announced they received approval from the Brazilian Antitrust Authority (CADE - Conselho Administrativo de Defesa Econômica) effective December 7, 2017, to establish a joint venture focused on the manufacture and distribution of premium braking products to original equipment vehicle manufacturers and aftermarket customers in the light vehicle markets in Brazil and throughout South America. The joint venture, known as JURID do Brasil Sistemas Automotivos Ltda, will be effective January 8, 2018. It will be approximately 80,1% owned by Fras-le and 19,9% owned by an affiliate of Federal-Mogul Motorparts.
 
“Together through this joint venture, our companies will offer technologically advanced products and services to our respective OE customers and a wider range of products and brands to the aftermarket in South America,” said Anderson Pontalti, Fras-le’s Brazil, North America and Asia Managing Director. “We see this joint venture as a significant step forward in our ability to meet the emerging needs of our customers, particularly in the light vehicle segment, throughout South America.”

“We welcome the opportunity to partner with Fras-le in this joint venture to provide industry-leading braking products to our original equipment customers, while also providing the South America aftermarket with premium braking offerings sold primarily under the globally-recognized and respected Jurid® and Ferodo® brands as well as a full LV suite of Federal-Mogul Motorparts branded AM products for Brazil,” said Miguel Garcia, Federal-Mogul Motorparts general manager-Latin America.

The joint venture will be based in Sorocaba, São Paulo, Brazil at the facility previously operated independently by Federal-Mogul. Effective January 8, 2018, the joint venture will operate under the name Jurid do Brasil Sistemas Automotivos LTDA. Products sold through the joint venture will be manufactured at the Sorocaba plant or supplied from other Federal-Mogul Motorparts' facilities outside the region and distributed through Fras-le’s distribution network throughout the region. Fras-le will provide complementary existing manufacturing technologies and engineering / test facilities through its operations in Caxias do Sul.

About Federal-Mogul

Federal-Mogul LLC is a leading global supplier of products and services to the world’s manufacturers and servicers of vehicles and equipment in the automotive, light, medium and heavy-duty commercial, marine, rail, aerospace, power generation and industrial markets. The company’s products and services enable improved fuel economy, reduced emissions and enhanced vehicle safety.

Federal-Mogul operates two independent business divisions, each with a chief executive officer reporting to Federal-Mogul's Board of Directors.

Federal-Mogul Motorparts sells and distributes a broad portfolio of products through more than 20 of the world’s most recognized brands in the global vehicle aftermarket, while also serving original equipment vehicle manufacturers with products including braking, wipers and a range of chassis components. The company’s aftermarket brands include ANCO® wipers; Beck/Arnley® premium OE quality parts and fluids; BERU®* ignition systems; Champion® lighting, spark plugs, wipers and filters; Interfil® filters; AE®, Fel-Pro®, FP Diesel®, Goetze®, Glyco®, National®, Nüral®, Payen®, Sealed Power® and Speed-Pro® engine products; MOOG® chassis components; and Abex®,Ferodo®, Jurid® and Wagner® brake products and lighting.

Federal-Mogul Powertrain designs and manufactures original equipment powertrain components and systems protection products for automotive, heavy-duty, industrial and transport applications.

Federal-Mogul was founded in Detroit in 1899 and maintains its worldwide headquarters in Southfield, Michigan. The company employs nearly 53,000 in 24 countries.

For more information, please visit www.FMmotorparts.com.

*BERU is a registered trademark of BorgWarner Ludwigsburg GmbH

About FRAS-LE S.A.

Fras-le (BOVESPA:FRAS), in the market for over 60 years, is one of the five largest manufacturers of friction materials in the world, with plants strategically located in Brazil, United States, China, Argentina and Uruguay, in addition to warehouses in Argentina, Europe, United States and Colombia, Commercial Operations in Chile, Europe, Mexico, the United Arab Emirates, and South Africa, allowing the Company to meet international demand quickly and effectively. With a portfolio of more than 12,000 P/Ns of the brands FRAS-LE, LONAFLEX and CONTROIL, the Company manufactures brake pads and linings for heavy vehicles; brake pads, linings and shoes for light vehicles; clutchfacings, brake pads and brake shoes for motorcycles; brake pads for aircraft; brake pads and shoes for trains and subways; molded and woven linings and universal sheets and other products for hydraulic brake systems such as master cylinders, wheel and clutches, repair of parts and others.

Fras-le is part of Randon Companies, a conglomerate that has been in the market for 68 years and employs 8,000 employees. The conglomerate is made up of leading companies in South America in the segments of vehicles and road equipment, auto parts and financial services.