Tenneco Automotive Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
March 15, 2001
TENNECO AUTOMOTIVE EXPANDS PRESENCE IN EASTERN EUROPE
Company Supports East-European Customers with New Plant in Poland
LAKE FOREST, ILLINOIS, MARCH 15, 2001 - Tenneco Automotive (NYSE: TEN) announced today that it is expanding its presence in Eastern Europe with the acquisition of a manufacturing facility in Gliwice, Poland to produce shock absorbers for European-based vehicle manufacturers. The company anticipates beginning manufacturing at the facility by the third quarter of 2001, after refurbishing the site and installing new equipment.
Tenneco Automotive's long-term strategy is to expand its global capabilities through niche acquisitions, joint ventures, and strategic alliances. With the increasing globalization of the automotive industry, the company is strategically expanding its operations in Eastern Europe and emerging markets in order to take advantage of lower operating costs, and to be better positioned to serve its original equipment customers in these growing markets.
"This $20 million investment marks an important step in the expansion of Tenneco Automotive's presence in Eastern Europe. This new facility will add capacity as we project further growth in the ride control business across the region," said Richard Sloan, managing director, Tenneco Automotive Europe. "The decision to expand in Poland was based on lower labor and operating costs, and highly attractive investment conditions offered by the Katowice Special Economic Zone."
"We are convinced that this investment will allow us to increase our share of the fast growing Eastern European market," said Josep Fornos, vice-president and general manager of Tenneco Automotive Europe's original equipment ride control unit. "Furthermore, it will undoubtedly and significantly strengthen the competitive position of the company as one of the top tier suppliers of ride control systems and components."
Gliwice is located in Southwest Poland, on the crossing of major international transportation networks and near Tenneco Automotive's plant in Rybnik, Poland, which serves the exhaust aftermarket.
Tenneco Automotive is a $3.5 billion manufacturing company headquartered in Lake Forest, Ill., with 23,000 employees worldwide. Tenneco Automotive is one of the world's largest producers and marketers of ride control and exhaust systems and products, which are sold under the Monroe® and Walker® global brand names. Among its products are Sensa-Trac® and Reflex™ shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow™ mufflers and DynoMax™ performance exhaust products, and Monroe® Clevite™ vibration control components.
CONTACT: Tenneco Automotive, Media relations
Jane Ostrander, 847/482-5607
Tenneco Automotive, Investor relations
Leslie Cleveland Hague, 847/482-5042