BEIJING, June 5, 2009 – Tenneco Inc. (NYSE: TEN) announced today that it has formed a new joint venture (JV) with Beijing Hainachuan Automotive Parts Company Limited (BHAP) to produce vehicle emission control exhaust systems for the China market. Initially, the new JV will supply emission control systems for Beijing Hyundai starting in 2010.
Tenneco will serve as the majority owner with a 51% equity stake and BHAP will own the remaining 49%. The new joint venture will be phased in over time and will leverage the engineering, manufacturing, and customer relationship strengths of each partner. In addition to supplying Hyundai, the joint venture will be well-positioned to supply other regional OEMs in the future.
Tenneco also announced that it intends to establish an emission control manufacturing presence later this year in Guangzhou to support new business with Nissan.
"The new JV partnership in Beijing and our expansion into Guangzhou will strengthen our position as the leading emission control supplier in China, as well as further diversify our customer mix in China while building our global business with Japanese and Korean manufacturers," said Gregg Sherrill, chairman and chief executive officer, Tenneco. "We have not wavered from our long-term growth strategies, even in the current global economic climate, and are committed to making targeted investments worldwide that enhance our capabilities for generating growth."
Tenneco’s new joint venture with BHAP represents its sixth joint venture, all majority-owned, in China. The company has emission control joint ventures in Shanghai, Dalian (2) and Chongqing, and a ride control joint venture in Beijing with Beijing Automotive Industry Company (BAIC), which is the parent company of BHAP. The company operates a wholly-owned elastomer manufacturing plant in Suzhou. In 2007, Tenneco opened an emission control engineering center in Shanghai.
In China, Tenneco’s OE customers include Volkswagen, General Motors, Ford, BMW, Brilliance, Chery, PSA, Daimler Chrysler, Suzuki, Nissan, Audi and Hyundai.
Tenneco is a $5.9 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 21,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. Tenneco markets its products principally under the Monroe®, Walker®, Gillet™ and Clevite®Elastomer brand names.
This press release contains forward-looking statements. Words such as "will," "intends" and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company's plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are: (i) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products; (ii) changes in consumer demand and prices, including decreases in demand for automobiles which include the company’s products; and (iii) the general political, economic and competitive conditions in markets where the company and its subsidiaries operate. These and other factors are described in more detail in the company’s filings with the Securities and Exchange Commission, including in its Annual Report on Form 10-K. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
(1) 847 482 5607
(1) 847 482 5810
+32 2 706 9025