The liquidation, which Tenneco said is subject to consultation with employee representatives, would eliminate 138 jobs. Tenneco, a publicly traded automotive industy supplier, employs 127 people at the Marzocchi plant in Bologna, Italy, and an additional 11 people in its operations in North America and Taiwan. The company intends to assist its motor bike customers with the transition of current production to an alternative supplier and expects to complete the closure by the end of 2015.
"We sincerely regret the impact these actions would have on our Tenneco Marzocchi employees, and thank them for their tireless efforts to improve performance and reduce costs. Unfortunately, it was not enough to overcome continuing market challenges in the two-wheeler business," said Brian Kesseler, chief operating officer, Tenneco. “We are committed to working with our employees’ representatives, and with our customers to make the transition as smooth as possible.”
Tenneco expects to record charges of approximately $27 million related to the liquidation in the third quarter, which includes approximately $17 million of cash expenditures, for severance and other employee-related costs, asset impairment charges and other expenses related to the closure. The company anticipates improving financial results by $7 million annually, beginning in 2016.
Tenneco is an $8.4 billion global manufacturing company with headquarters in Lake Forest, Ill., and approximately 29,000 employees worldwide. It's one of the largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive, commercial truck, and off-highway original equipment markets, and the aftermarket. Its principal brand names are Monroe, Walker, XNOx and Clevite Elastomer.
In 2008, Tenneco bought Gruppo Marzocchi, based near Bologna, Italy, and founded in 1949. Tenneco paid about $15 million for the company by assuming its outstanding debts.
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