Tenneco Automotive is to close its Walker exhaust manufacturing facility in Queretaro, Mexico by the end of this year.
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The closure will affect 170 employees at the plant which produces emission control products for original equipment manufacturers.
Queretaro production will be consolidated at the company’s exhaust manufacturing facility at Puebla, Mexico.
Tenneco said in a statement that the closing is a part of Project Genesis, a worldwide plan to optimise its manufacturing, distribution and logistics.
Announced in December 2001, it is intended to help improve efficiency in the company’s global operations through consolidation, transferring production between facilities, rearranging operational flow within specific plants and increasing standardisation among the company’s processes and products.
The announcement is the seventh of eight announced facility closings as part of Project Genesis.
The company is also streamlining operational flow or relocating capacity at 20 manufacturing and distribution facilities, five of which are already completed.
Year-to-date, Tenneco claims $US2 million in savings from the project and expects to realise approximately $11 million in 2002.
Once rationalisation is completed, the company anticipates annual savings of $30 million from 2004.
