Tenneco Unit Establishes Presence in South America
May 03, 2011
Tenneco Inc. said its Tenneco Automotive unit established exhaust-manufacturing operations in Argentina and Brazil to take advantage of the rapidly expanding auto industry in South America. The move gives the company its first presence in South America for exhaust systems, which are made by Tenneco Automotive's Walker Manufacturing unit. Walker has operations in North America, Asia and South Africa. Tenneco said it acquired Argentina's second-largest exhaust manufacturer, Riddell. The company didn't disclose terms of the acquisition. Tenneco Automotive said Riddell provides exhaust products for Volkswagen AG, the Mercedes-Benz AG unit of Daimler-Benz AG and General Motors Corp. vehicles. The plant, in Buenos Aires, also will make exhaust systems for Ford Motor Co.'s 2012 Escort. The plant employs about 120 people. In Brazil, Tenneco Automotive has begun making exhaust systems at its plant near Sao Paulo and will initially supply products to Volkswagen. Tenneco has been making shock absorbers and struts, among other ride-control parts, at the plant. The company said its expansion in the two countries comes as South America's auto market is rapidly expanding. In Argentina, Tenneco said, car and light-truck production has been boosted by a stabilized economy and the lowest inflation rate in 40 years. Car and light-truck production is expected to nearly double to 750,000 vehicles by 2013 from this year.
