Tenneco, FAW Sihuan form emission-control parts JV

Shanghai, March 3 (Gasgoo.com) U.S. auto-parts maker Tenneco Inc. yesterday announced that it has entered into a joint venture with a Chinese company to supply emission-control components and systems for passenger and commercial vehicles, AP reported.

Tenneco's deal with Changchun FAW Sihuan Group Ltd., a subsidiary of FAW Group Corp., is its seventh joint venture in China. The new venture will be based in China's northeastern city of Changchun, where FAW Group, China's second largest automaker, is based.

Under the deal, Tenneco will have a 41% equity share in the three-way venture and FAW Sihuan will have a stake of 49%. Tenneco Tongtai (Dalian) Exhaust System Co. will have a 10% stake. As Tenneco Inc. has an 80% stake in Tenneco Tongtai, it will have a controlling interest in the new JV. FAW-Volkswagen and FAW Jiefeng will be among its initial customers.

The U.S 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. Its commercial vehicle engine and OE customers include China National Heavy Truck Co., Shanghai Diesel Engine Co. and Weichai Power.