After entering into a long-term supply agreement with General Motors Corporation to continue supplying shocks and struts for passenger cars, Tenneco Inc. finalized a purchase agreement with Delphi Automotive Systems LLC to acquire ride control assets and inventory at Delphi's Kettering, Ohio facility. The shocks and struts will be shipped to GM from the newly acquired Kettering facility. "Tenneco's acquisition of these assets, and a committed book of business from GM, gives us an opportunity to further diversify our ride control business in North America with more passenger car business as well as strengthen our ride control manufacturing capabilities in other key markets ,” says Neal Yanos, senior vice president and general manager, North America Original Equipment Ride Control, Tenneco." The purchase is also a win for the Kettering community and employees since jobs will be maintained that otherwise would be lost. We're moving ahead with a strong local management team in place with the goal of growing the plant's book of business." Tenneco has agreed to pay approximately $10 million for existing ride control components inventory and approximately $9 million for certain machinery and equipment. The company will also lease a portion of the Kettering facility from Delphi. As part of the deal, Tenneco has also acquired valuable excess manufacturing assets, which it intends to use to continue growing its OE ride control business globally. Tenneco will employ approximately 400 hourly and salaried employees at the Kettering plant. In connection with the purchase agreement, Tenneco has entered into a five-year agreement with the International Union of Electrical Workers (IUE), which will represent the hourly workforce at the facility. The agreement was ratified by the IUE's rank and file in August 2007. For more information about Tenneco, visit the company's Web site. |
