Tenneco Expands in China with New Emission Control Joint Venture in Beijing

Will supply emission control systems for Beijing Hyundai starting in 2010

Tenneco Inc. announced on June 8 that it has formed a new joint venture with Beijing Hainachuan Automotive Parts Co. Ltd. (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%.

In addition to supplying Hyundai, the joint venture plans 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.

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.

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