Tenneco Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
January 24, 2006
TENNECO WINS NEW EXHAUST AFTERTREATMENT BUSINESS WITH INTERNATIONAL TRUCK AND ENGINE CORPORATION
Company will supply exhaust systems for 2007 medium-duty diesel vehicles
LAKE FOREST, ILLINOIS, JANUARY 24, 2006 - Tenneco (NYSE:TEN) announced today that it was awarded a contract with International Truck and Engine Corporation to supply exhaust aftertreatment systems for its entire line of medium-duty diesel vehicles with International engines, launching in 2007. The contract is Tenneco's first in North America for diesel emission control technologies for the medium duty commercial vehicle segment.
"We are pleased to win such a significant contract with International Truck and Engine Corporation. As a leading global supplier of diesel aftertreatment technologies, we've taken our best-in-class exhaust technology for light diesel vehicles and applied that same expertise to develop effective solutions for International," said Mark P. Frissora, chairman, CEO and president, Tenneco. "We are well-positioned to grow in the commercial vehicle market with our global engineering capabilities and advanced diesel technologies that help customers meet increasingly stringent emissions standards."
Tenneco will provide International's vehicles with complete exhaust aftertreatment systems, including the diesel particulate filter (DPF) and the diesel oxidation catalyst (DOC). The new exhaust system also features air gap pipe, designed to work together with other components to provide superior thermal efficiency and help improve fuel economy, and a new hanging system which utilizes the expertise from Tenneco's Clevite®Elastomer division.
Tenneco's latest generation DPF system was designed using Tenneco's proprietary computational fluid dynamics and particulate ash modeling CAE (Computer Aided Engineering) technologies. The DPF not only provides an effective solution, but also has an advanced modular design that allows for easy cleaning and service every 150,000 miles. This advanced design allows International's service technicians to remove the DPF from the vehicle in less than 10 minutes, with a simple one-bolt removal system.
The development and engineering for International Truck and Engine Corporation is being done at Tenneco's engineering center in Grass Lake, Michigan and production will take place at its exhaust manufacturing facility in Seward, Nebraska.
Tenneco engineers work collaboratively with OEM customers to develop emissions control products and systems that enable diesel powered engines to cost effectively achieve mandated emissions levels. Tenneco offers systems that reduce emissions, airborne and structural NVH and system costs without negatively impacting engine performance.
"We have been actively involved in the diesel particulate filter business since the 1980's in Europe and went into high volume serial production on light vehicles in 2000," said Frissora. "This win with International continues the growth of Tenneco's diesel particulate filter business, expected to be over 1.5 million units annually in 2007."
Tenneco's first serial production of diesel emission control technologies in the commercial vehicle segment was last year's launch of the DaimlerChrysler Actros in Europe. The Actros represented one of the first applications of integrating SCR (selective catalytic reduction) and exhaust silencing components in one unit for commercial vehicles.
Tenneco is also providing diesel aftertreatment technology in North America for Ford Motor Company, General Motors, DaimlerChrysler and others in support of the new 2007 EPA emissions regulations.
Tenneco is a $4.2 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 18,400 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. Among its products are Sensa-Trac® and Monroe Reflex® shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow® mufflers, Dynomax® performance exhaust products, and Clevite® Elastomer noise, vibration and harshness control components.
This press release contains forward-looking statements. Words such as "expect," "will," "continue" 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 commercial vehicle manufacturers' production rates and their actual and forecasted requirements for the company's products; (ii) the overall highly competitive nature of the commercial vehicle parts industry; (iii) the cyclical nature of commercial vehicle production and sales of commercial vehicles; and (iv) the company's ability to develop and profitably commercialize new products and technologies, and the acceptance of such new products and technologies by the company's customers. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
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