Tenneco To Close Two Manufacturing Plants; Sees Q4 Restructuring Charges

(RTTNews) - Tenneco Inc. (TEN) said Friday it will close its original equipment or OE ride control plants in Owen Sound, Ontario and Hartwell, Georgia as part of an initiative to realign its manufacturing footprint to enhance operational efficiency as well as respond to changing market conditions and capacity requirements.

Tenneco expects to begin transferring current customer business primarily to its ride control facility in Kettering, Ohio, later this year. The company said it expects to complete the closure of the two facilities near the end of the second quarter of 2020.

Brian Kesseler, Tenneco co-CEO said, "We recognize the impact this action will have on our employees, and are working with the local communities to provide transition assistance for all affected employees, including opportunities to transfer to other Tenneco locations."

Tenneco estimates that these restructuring actions will generate between $20 million and $25 million in annualized savings beginning by the end of 2020.

The company also expects restructuring and related charges in a range of $70 million to $85 million, with $20 million to $30 million occurring in the fourth quarter of 2018.