Tenneco to close eight plants, cut 900 jobs

LAKE FOREST, Ill. (Jan. 31)—As part of a restructuring program, Tenneco Automotive said it will close eight plants in North America and Europe, consolidate and improve the workflow of 20 others, and transfer production assets between some of its plants. The moves, which could affect up to 900 employees, should reduce overcapacity and improve standardization and efficiency in its global manufacturing, distribution and logistics operations, Tenneco said. The supplier took charges of $32 million in the fourth quarter and expects to incur about $15 million in additional charges during 2002. The restructuring plan, dubbed "Product Genesis," should be completed by the end of the first quarter of 2003 and should generate $11 million in savings this year and $30 million in annualized savings beginning in 2004. Tenneco reported a net loss of $8 million before restructuring and other charges for the fourth quarter, vs. a net loss of $21 million for the same quarter of 2000.