Tenneco Inc. entered into its seventh joint venture in China, partnering 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 joint venture will be based in Changchun, China. Tenneco will have management control of the venture, which includes three partners. Tenneco will have a 41 percent equity share; Changchun FAW Sihuan will own 49 percent; and Tenneco Tongtai (Dalian) Exhaust System Company Ltd. will have 10 percent.
Changchun FAW Sihuan sold 1.8 million vehicles in 2009 and is one of the oldest vehicle manufacturers in China.
“In our view, the announcement is a positive considering FAW's size and scale,” Wells Fargo analyst Rick Kwas wrote today in an e-mail report.
Tenneco, maker of shock absorbers, emission control and ride control systems, reported net income of $17 million for the fourth quarter of 2009, or 32 cents per share, compared with a $298 million loss, or $6.40 per share, a year earlier. Sales rose 9 percent from a year earlier, to $1.32 billion.
Tenneco, which is based in suburban Chicago, ranks No. 35 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $4.80 billion in 2008.