Will provide high-quality braking products to OE and Aftermarket customers in Brazil
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.
Press Release: Fras-le