CHANGCHUN, China —Tenneco has entered into a joint venture (JV) with Changchun FAW Sihuan Group Ltd., a subsidiary of FAW Group Corp., to supply emission control components and systems for passenger and commercial vehicles. The new JV will be based in Changchun, China.
“We are very excited to be partnering with FAW, one of China’s leading manufacturers of light and commercial vehicles,” said Gregg Sherrill, chairman and CEO, Tenneco. “This new JV not only further expands our market-leading emissions control position in the growing China passenger vehicle market, but also gives us better access to China’s commercial vehicle segment, which is the largest in the world.”
The JV has three partners – Tenneco with a 41 percent equity share, FAW Sihuan with a 49 percent share and Tenneco Tongtai (Dalian) Exhaust System Co. Ltd. with a 10 percent share. Tenneco will have management control due to its 80 percent equity share in Tenneco Tongtai. Initial customers will include FAW-Volkswagen and FAW Jiefeng.
Tenneco’s new joint venture with FAW Sihuan represents its seventh joint venture in China, all of which are majority owned. The company has emission control joint ventures in Shanghai, Dalian (2), Chongqing and Beijing, and a ride control joint venture in Beijing. In 2007, Tenneco opened an emission control engineering center in Shanghai. The company also operates a wholly-owned elastomer manufacturing plant in Suzhou.
In China, Tenneco’s light vehicle OE customers include Volkswagen, General Motors, Ford, BMW, Audi, Nissan, Suzuki, Hyundai, PSA, Brilliance and Chery. The company’s commercial vehicle engine and OE customers include China National Heavy Truck Co., Shanghai Diesel Engine Co. and Weichai Power.
