Tenneco to shutter Marzocchi
Thursday, July 23, 2015
Posted by: Wes Fleming
Tenneco announced on 22 June its intention to close motorcycle suspension arm Marzocchi by the end of 2015. This closing would eliminate 138 jobs - 127 at the Marzocchi plant in Bologna, Italy, and 11 jobs in North America and Taiwan.
Tenneco, an $8.4 billion global manufacturing company based in Lake Forest, Illinois, has about 29,000 employees worldwide and is one of the world's largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive, commercial truck, and off-highway original equipment markets, as well as the aftermarket. Tenneco's principal brands are Monroe, Walker, XNOx and Clevite Elastomer.
The Marzocchi closure is expected to record charges of $27 million in Q3, including $17 million in cash expenditures. These charges consist of severance and other employee-related costs, asset impairment charges, and other expenses related to the closure. Tenneco expects improving financial results by about $7 million annually, beginning in 2016.