ERJ staff report (LMH)
Lake Forest, Illinois – Tenneco says it is to close its 'ride performance' plant in Gijon, Spain, and “decomplex” its ride performance plant in Sint-Truiden, Belgium, as part of an initiative to address “ongoing weak macroeconomic conditions in Europe”.
Some 480 jobs will be lost at the plants, where the company makes shock absorbers and anti-vibration products for vehicle manufacturers and the replacement market.
Tenneco said its plans are subject to consultation with the employee works councils.
In Belgium, the move to decomplex the plant involves focusing activities on more highly automated, advanced component production and final assembly, reducing the number of high labour assembly operations, Tenneco said.
"We sincerely regret the impact these actions would have on our employees at Gijon and Sint-Truiden," said Hari Nair, Chief Operating Officer, Tenneco. "However, the industry outlook for Europe continues to be weak with no near-term recovery. These changes, although difficult, would help us operate as efficiently as possible in this environment and strengthen our long-term competitiveness in the critically important European market."
Tenneco expects to record charges of $63 million related to these actions, of which $55 million will be recorded in the third quarter. This announcement follows the company’s closing of an aftermarket facility in Vittaryd, Sweden, which was completed in August 2013.
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News Release from Tenneco