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LANSING, MI-The 170,000-sf Federal Forge facility in Lansing is now under new ownership. Federal Forge was purchased out of bankruptcy by Bharat Forge America, the North American subsidiary of Bharat Forge Ltd.--India's largest manufacturer and exporter of automotive engine and suspension components.
Bharat purchased Federal Forge Inc. for $9 million in an all-cash deal. The value of the real estate was not broken out.
"Our purchase of Federal Forge, now renamed Bharat Forge America, provides us a strategic presence in North America," said B.N. Kalyani, chairman and managing director of Bharat Forge.
The 170,000-sf plant produces a variety of forged automotive components such as control arms, links, steering knuckles, connecting rods, and various other parts for its major customers, ZF Lemforder (for General Motors Corp.) and Goodyear Tire & Rubber Co. Its sales are approximately $60 million per year.
It's not unusual for foreign firms to invest in American steel or iron businesses, said Tim Considine, a professor of natural resource economics at Pennsylvania State University. In a report prepared for the American Iron and Steel Institute, Considine said that the investment of foreign money in American businesses is an ongoingtrend. "American companies buy foreign firms, and foreign firms buy American companies," Considine said.
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