Tenneco to close two plants

LAKE FOREST - Tenneco Inc. will close its original equipment ride control plants in Owen Sound, Ontario and Hartwell, Georgia as part of an initiative to realign its manufacturing footprint to enhance operational efficiency and respond to changing market conditions and capacity requirements.

The manufacturer of original and after market vehicle components said it expects to begin transferring operations to its ride control facility in Kettering, Ohio, later this year. Tenneco expects to complete the closure of the two facilities near the end of the second quarter of 2020.

The restructuring will generate between $20 million and $25 million in annual savings beginning by the end of 2020, company officials estimated. Restructuring and related charges are expected to be in the range of $70 million and $85 million, with $20 million to $30 million occurring in the fourth quarter of 2018. The charges comprise between $40 million and $50 million of cash expenditures (including severance payments to employees, the cost of decommissioning and starting up equipment, and other costs associated with this action) and between $30 million and $35 million of noncash asset write-downs and other costs.

"Today's actions to realign our North American ride control operations will strengthen our long-term competitiveness in this critically important region," said Brian Kesseler, Tenneco co-CEO. "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."