Tenneco Automotive Expands Operations in China - Brief Article

Autoparts Report, March 19, 2003

Tenneco Automotive said that its exhaust manufacturing joint venture in Dalian, China has expanded its operations with a new JIT (just-in-time) manufacturing plant in Changchun, China. The new facility is already operational and manufactures exhaust components for the Volkswagen Bora, the company said. Later this year, the facility will also supply the Volkswagen Jetta and Golf platforms, the company added.

Initially, with the addition of the Jetta and Golf platforms, the facility will supply approximately 140,000 exhaust systems annually for 12 different engine models, the company said. In addition to its joint venture operations at Dalian and the new facility at Changchun, Tenneco Automotive said it has majority ownership in joint venture manufacturing operations in Beijing and Shanghai. The Dalian and Shanghai operations manufacture exhaust components and systems and the Beijing joint venture produces shock absorbers and struts.

The company said its operations in China supply ride and emission control products and systems to leading original equipment manufacturers in China including Volkswagen, PSA, General Motors, Nissan and Ford. The company also produces ride and emission control products for the replacement market in China.

"We have a strong foothold in China with our successful joint venture operations and are well-positioned to capture growth opportunities in this rapidly expanding market," said Timothy Donovan, executive vice president and managing director, Tenneco Automotive International Group.

Tenneco Automotive said it began production in China with its first joint venture in 1995. The company's China operations reported $80 million in revenue in 2002, an 87 percent increase compared with the previous year.