BORGWARNER MORSE TEC AND TI DIAMOND FORM JOINT VENTURE IN INDIA TO SERVE GROWING MARKET FOR ENGINE TIMING CHAIN

CHICAGO, July 31 /PRNewswire/ -- BorgWarner Morse TEC has signed a joint venture formation agreement with TI Diamond Chain Ltd. of India. Morse TEC will hold the majority position in the new venture.

"India is an important place to do business with emerging markets, and presents significant growth opportunities for the automotive chain business," said Roger Wood, President and General Manager, BorgWarner Morse TEC. "The demand for small-pitch silent chain in India is expected to increase as the country's adoption of EURO II emission standards drives changes in engine technology," he said.

TI Diamond, part of the engineering group within the Murugappa Group, a diverse business having total sales of $850 million, is a $25 million roller chain manufacturer that serves motorcycle, automotive, industrial and agricultural markets with several operations located throughout India. The new joint venture, BorgWarner Morse TEC Murugappa, will be housed in a 33,000-square-foot, QS and ISO 9000 certified plant in Kakkalur, near Chennai. Initially the joint venture will employ about 60 people. "In addition to establishing Morse TEC's presence in India, this new venture will strengthen our ability to serve current and future customers worldwide," Wood said. The products will be manufactured for both the Indian and global markets. The motorcycle market in India is growing at the rate of 15% per year and the products manufactured by the joint venture will cater to the growing demands of motorcycle manufacturers within India, in addition to global requirements for other timing chains.

BorgWarner TorqTransfer Systems and Turbo Systems also participate in joint ventures in India to maximize opportunities presented by the growing automotive markets there.

BorgWarner Morse TEC is the global leader in the design and manufacture of automotive chain systems and components for engine timing, automatic transmission and four-wheel drive applications. Chicago-based BorgWarner (NYSE: BWA) is a product leader in highly engineered components and systems for vehicle power-train applications worldwide. The company operates manufacturing and technical facilities in 46 locations in 13 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar International and VW Group. The Internet address for BorgWarner is www.bwauto.com. For additional information, contact BorgWarner Corporate Communications at (312) 322-8500.