Federal-Mogul Announces Joint Venture Agreement
Nov. 30, 2015—Federal-Mogul Motorparts announced on Wednesday a joint venture agreement with Loxley Public Company Limited under which Federal-Mogul will have majority stake and operational control of Parts Zone Co. Ltd., an automotive parts distributor in Thailand.
As part of the joint venture, which will be based in Bangkok, the number of locations is expected to expand from the current four outlets in Thailand to up to a dozen additional outlets.
"In a strategic expansion of our distribution footprint in Asia Pacific, Parts Zone will serve as a key platform for Motorparts' premium-branded products in Thailand and the greater Asian region. We see our expanded presence there as pivotal to our continued growth in the region, especially given the anticipated creation of the ASEAN Economic Community (AEC) by the end of 2015,” said Dan Ninivaggi, CEO of Federal-Mogul Motorparts.
"We look forward to partnering with Federal-Mogul Motorparts, a global manufacturer and distributor of premium branded automotive parts, to build on Parts Zone's established presence in Thailand. This joint venture strengthens our ability to meet the automotive parts needs of the Thai market which currently has vehicles in operation of 13.2 million," said Suraphand Bhasitnirandr, senior executive vice president, Loxley Public Company.