CHANGCHUN, China (March 2, 2010)—Automotive parts and systems maker Tenneco Inc. has created a joint venture with Changchun FAW Sihuan Group Ltd. to supply emission control components and systems for passenger and commercial vehicles.
Based in Changchun, the joint venture will have three partners: Tenneco will hold a 41-percent equity share; FAW Sihuan, a subsidiary of FAW Group Corp., will have a 49-percent share; and Tenneco Tongtai (Dalian) Exhaust System Co. Ltd. will hold a 10-percent stake. Tenneco said it will have management control due to its 80-percent equity share in Tenneco Tongtai.
Initial customers will include FAW-Volkswagen and FAW Jiefeng.
Gregg Sherrill, Tenneco's chairman and CEO Tenneco, said in a prepared statement that the JV expands its market-leading emissions control position in the growing China passenger vehicle market, and gives the firm better access to China's commercial vehicle segment.
Lake Forest, Ill.-based Tenneco's deal with FAW Sihuan is its seventh JV in China—all are majority owned.
The company makes and markets emission control and ride control products and systems for the automotive original equipment market and aftermarket principally under the Monroe, Walker, Gillet and CleviteElastomer brand names.