BEIJING — Tenneco Inc. has formed a new joint venture (JV) 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 percent equity stake and BHAP will own the remaining 49 percent. The new joint venture will be phased in over time and will leverage the engineering, manufacturing and customer relationship strengths of each partner. In addition to supplying Hyundai, the joint venture will be well-positioned to supply other regional OEMs in the future, according to Tenneco.
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. “We have not wavered from our long-term growth strategies, even in the current global economic climate, and are committed to making targeted investments worldwide that enhance our capabilities for generating growth.”
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.
