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February 28, 2006 01:00 AM

Tenneco setting up elastomer parts plant in China

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    SHANGHAI, China (Feb. 28) — Tenneco Inc. is setting up a wholly owned subsidiary in China to make elastomer components for the Chinese vehicle industry.

    The new unit, Tenneco Suzhou Vibration Control Co. Ltd. in Suzhou, is Tenneco´s first solely owned operation in China.

    The new plant is part of a $21 million investment package in manufacturing and engineering facilities in China, which includes adding a joint-venture emission-control engineering center in Shanghai and increasing the share ownership in its Beijing ride-control joint venture to 65 percent.

    The 62,400-sq.-ft. plant will use Tenneco´s global elastomer engineering and manufacturing capabilities, and will supply elastomer components designed to help improve vehicle ride and handling while reducing vehicle noise, vibration and harshness under the Clevite Elastomer and Monroe brands, Tenneco said.

    "One of Tenneco´s key growth strategies is to expand in emerging markets, and China is our greatest opportunity in this area," said Mark Frissora, chairman, CEO and president, in a prepared statement.

    The plant, which initially will employ 80, is scheduled to open in June.

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