(Adds CEO comments, details of restructuring actions)
DETROIT, Oct 29 (Reuters) - Tenneco Inc (TEN.N) is cutting 1,100 jobs worldwide and closing four North American manufacturing facilities as part of a restructuring which it estimates will save $64 million annually, the auto parts supplier said on Wednesday.
Tenneco, which said it is responding to the “worsening industry downturn”, expects to record up to $60 million in charges — about $44 million in cash — related to the restructuring steps it aims to complete by the end of 2009.
The latest job cuts — 500 salaried and 600 hourly positions — represent more than 5 percent of Tenneco’s global workforce. The company has already slashed 1,150 jobs worldwide so far this year, including 760 in North America.
In addition to the four manufacturing facilities in North America, Tenneco said it will also close its engineering operation in Dunsborough, Australia.
“The current global economic crisis and dramatically falling consumer demand for vehicles around the world are accelerating a downshift in build rates in most regions globally,” Tenneco Chief Executive Gregg Sherrill said in a statement.
“We must act quickly by better aligning our operations with the new realities of the market.”
The plants slated for closure include an emission control facility in Evansville, Indiana, and an elastomer facility in Milan, Ohio.
Tenneco expects to book about $25 million in charges in the fourth quarter and the remainder through 2009.
The Lake Forest, Illinois-based supplier said it intended to use available cash generated from operations as well as its revolving credit facilities to pay for the restructuring, adding it expected a cash payback of less than one year. (Reporting by Soyoung Kim, editing by Gerald E. McCormick, Dave Zimmerman)