CHANGCHUN, CHINA (March 2, 2010) – Tenneco Inc. (NYSE: TEN) today announced it has entered into a joint venture (JV) with Changchun FAW Sihuan Group Ltd., a subsidiary of FAW Group Corporation, to supply emission control components and systems for passenger and commercial vehicles. The new JV will be based in Changchun.
"We are very excited to be partnering with FAW, one of China’s leading manufacturers of light and commercial vehicles," said Gregg Sherrill, chairman and CEO, Tenneco. "This new JV not only further expands our market-leading emissions control position in the growing China passenger vehicle market, but also gives us better access to China’s commercial vehicle segment, which is the largest in the world."
The JV has three partners – Tenneco with a 41% equity share, FAW Sihuan with a 49% share and Tenneco Tongtai (Dalian) Exhaust System Company Ltd. with a 10% share. Tenneco will have management control due to its 80% equity share in Tenneco Tongtai. Initial customers will include FAW-Volkswagen and FAW Jiefeng.
Tenneco’s new joint venture with FAW-Sihuan represents its seventh joint venture in China, all of which are majority owned. The company has emission control joint ventures in Shanghai, Dalian (2), Chongqing and Beijing, and a ride control joint venture in Beijing. In 2007, Tenneco opened an emission control engineering center in Shanghai. The company also operates a wholly-owned elastomer manufacturing plant in Suzhou.
In China, Tenneco’s light vehicle OE customers include Volkswagen, General Motors, Ford, BMW, Audi, Nissan, Suzuki, Hyundai, PSA, Brilliance, and Chery. The company’s commercial vehicle engine and OE customers include China National Heavy Truck Company, Shanghai Diesel Engine Company and Weichai Power.
Tenneco is a $4.6 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," 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) general economic conditions; (ii) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products; (iii) the overall highly competitive nature of the automotive parts industry; and (iv) the cyclical nature of automobile sales and production. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.