THE FEDERAL-Mogul factory in Lydney has been sold with an assurance that the new owners will keep the 250-strong workforce.

The Lydney factory, which produces camshafts for the motor industry, has been sold to American company JD Norman Industries along with another facility, which makes connecting rods, based in Windsor, Canada.

Federal-Mogul's co chief executive officer Rainer Jueckstock said: "The Windsor and Lydney plants are respected for their experience and high quality operations by their customers, including General Motors, Ford, Chrysler, Linamar, Jaguar, Land Rover, PSA and others.

"However the connecting rod and camshaft business is not core to Federal-Mogul Powertrain's long-term portfolio strategy.

"These plants will benefit from the industrial experience, business strategy and respected relationships with key customers offered by the JD Norman management team.

"We will work with them to ensure a smooth transition for customers, employees and other stakeholders."

Justin D Norman, the president of JD Norman added: "The acquisition of the Lydney and Windsor businesses will advance JD Norman's strategic vision of building a global manufacturer with world class capabilities and service.

"It is our intention to fully integrate the businesses into JD Norman and continue to provide customers with a high level of quality and service.

"We are excited about the addition of the talented teams in Canada and the UK."

"By adding two key powertrain products in connecting rods and camshafts and new plant locations in Canada and the United Kingdom, JD Norman adds diversification and new markets to our portfolio."

The deal was agreed last Friday but the terms have not been made public.

John Cooke, the senior Unite steward at Federal-Mogul in Lydney, said: "Federal Mogul Camshafts has a full order book, supplying up to 130,000 camshafts a week to Ford, Volvo, Jaguar and others.

"The new American owner told me personally that there was also a possibility of a new foundry to expand production."

As well as the 248 jobs at the plant many small businesses supply components and materials to Federal-Mogul, making it a key part of the local economy.