TENNECO
TENNECO
Cleaner, Faster, More Productive PRODUCTION: Timothy Reeder
A $9.3 billion global manufacturing company, Tenneco is one of the world’s largest designers, manufacturers and marketers of clean air and ride performance products and systems, which it supplies to the automotive, commercial truck and off-highway markets.
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Tenneco is one of a select few top U.S automotive component suppliers represented in South Africa today, having successfully built strong business links between its South African operations and other international stakeholders which in turn enhance the potential for mutually beneficial trade between the two countries. Tenneco in South Africa has become perhaps most well-known
for pioneering global ideas for cleaner air, as well as its unerring commitment to developing smoother, quieter and safer transportation. As such, it is among the world’s leading designers, manufacturers and distributors of both Ride Performance and Clean Air products and technology solutions for diversified markets including light vehicle, commercial truck, offhighway equipment, and also caters for the aftermarket.
DRIVING MADE SAFER AND CLEANER Within a raft of high-end offerings, with primary brand names such as Monroe®, Walker®, XNOx™ and Clevite®Elastomer, Tenneco has established itself as a global leader in two key product lines. In employing its Ride Performance offering, customers look to the company to provide advanced suspension technologies that deliver performance, comfort and the power to differentiate vehicles. As Tenneco itself explains:
// WE ARE ABLE TO DRAW ON WORLDWIDE RESOURCES TO SERVE CUSTOMERS WITH HIGH QUALITY STANDARDS AND SERVICE ANYWHERE IN THE WORLD // 2 / www.enterprise-africa.net
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INDUSTRY FOCUS: AUTOMOTIVE
“By partnering with our customers we deliver safety, value and a superior driving experience, powered by people, innovation and superior products. “We are able to draw on worldwide resources to serve customers with high quality standards and service anywhere in the world. Our solutions are at the forefront of technology and tailored to each vehicle manufacturer’s requirements and vehicle type, making us a partner of choice for customers wanting to create a signature ride for their vehicles.” In the second of its dual areas of expertise, Tenneco has grown into a worldwide preferred choice for designing, engineering and manufacturing Clean Air solutions for
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passenger cars, light trucks, commercial trucks and high horsepower engines. These technologies are used in an array of applications spanning marine, locomotive and stationary power. “We deliver Clean Air products and systems designed to meet global emissions regulations anywhere in the world to ensure that we have the right solutions in place to meet the needs of our global customers,” says the company of its inarguable claims to Clean Air product leadership, which has seen it investing in its core sciences including combustion and thermal management, materials science and thermoelectrical energy. “This advanced research enables the development of creative solutions that help us to better meet customers’
current and future emissions control needs,” Tenneco explains. SA’S CRITICAL MARKET? It is impossible to overstate the significance of the automotive industry to South Africa’s overall prosperity; the sector is the mainstay of the national industrial base and accounts for 7.5% of GDP. In recent years South Africa has improved its global ranking to 21st in
// THE AUTOMOTIVE INDUSTRY IS TRANSFORMING AT AN INCREDIBLE RATE //
TENNECO
the world, from 24th just a few years prior, and holds a market share of 0.68%. South Africa remains the biggest vehicle market in Africa, accounting for 37% of new vehicle sales on the continent. According to economist Dr Azar Jammine, Director and chief economist at Econometrix, a slight slowdown in new purchases will spell big business for the likes of Tenneco. “The decline in new vehicle sales in recent years affected retail sellers negatively,” he began, “but it would provide a boost for the after-sales market as buyers would keep their vehicles for longer. This means additional maintenance and servicing.” This is a perfect time, then for Tenneco to be named a GM Supplier of the Year by General Motors during its 26th annual Supplier of the Year awards ceremony, as was the case in April this year. GM recognised 132 of its best suppliers from 17 countries who have consistently exceeded GM’s expectations, created outstanding value, or brought innovations to the company. EXCEEDING EXPECTATIONS Tenneco earned two Supplier of the Year awards at the ceremony, one being given to each of its Clean Air and Global Elastomer teams. The award was the second in three years for the elastomers team, which was also afforded the same lucrative status in 2016. “This is an opportunity for General Motors to honour those suppliers who are truly the best of the best,” outlined Steve Kiefer, GM senior vice president, Global
// GOING TO MARKET WITH WELLRECOGNISED BRANDS AND EXPANDED DISTRIBUTION CAPABILITIES IS A STRONG FORMULA FOR CAPTURING GROWTH //
www.freightmore.co.za • Tel: 0861 76 76 76
Freightmore is the proud transport partner to Tenneco Purchasing and Supply Chain. “The automotive industry is transforming at an incredible rate. The relationships we have with our supply base means everything when it comes to delivering a strong vehicle line-up today and the cutting-edge vehicles and mobility services of tomorrow. “We’re extremely honoured to receive this important recognition from General Motors for our Clean Air and Elastomers teams,” responded Brian Kesseler, Tenneco CEO. “This award demonstrates Tenneco’s commitment to partnering with our customers to deliver world-class products and solutions.” INDUSTRY LEADERS UNITED April also brought big news this year in the form of activist investor Carl Icahn’s announcement that he plans to sell auto parts maker Federal-Mogul to Tenneco in a huge $5.4 billion acquisition deal. This would result in his unloading an investment he has held for nearly two decades and picking up a new stake in Tenneco. Federal-Mogul Corporation is an American developer, manufacturer and supplier of products for automotive, commercial, aerospace, marine, rail and off-road vehicles, with expertise in industrial, agricultural and powergeneration applications.
Tenneco plans to separate into two independent, publicly traded companies - one focusing on powertrain products and the other on auto parts. According to Tenneco, “the transformational acquisition looks to accelerate long-term value creation by creating two focused, purpose-built industry leaders in their respective markets with greater scale, and strategic and financial flexibility.” The partnership brings together complementary businesses, and the aftermarket and ride performance company will include Tenneco Ride Performance and Federal-Mogul Motorparts, while the powertrain technology company will be made up of Tenneco Clean Air and FederalMogul Powertrain. “Going to market with well-recognised brands, more product categories, greater coverage and expanded distribution capabilities is a strong formula for capturing growth, particularly in China,” concluded Tenneco Executive Chairman Gregg Sherrill on the ground-breaking partnership.
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ENTERPRISE AFRICA
AUG UST 2018