Tenneco has announced that it will discontinue its Marzocchi motorcycle and mountain bike business and liquidate operations.
Subject to a consultation process with employee representatives, the move will likely result in the loss of 138 jobs, 127 of which are from the Bologna plant. The additional 11 are positions in North America and Taiwan.
"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.”
UPDATE: The firm's Twitter handle has, however, suggested production of the mountain bike product may continue. Buyout announcement to follow?
UPDATE 2: Windwave have confirmed that a buyer is still sought and Marzocchi will still be present at both Eurobike and Interbike.
The complete closure at Tenneco is expected to come by the end of 2015.
According to a statement by the company:
"This intended action is a part of Tenneco’s ongoing efforts to optimize its Ride Performance business globally while continuously improving its operations and increasing profitability.
"Tenneco expects to record charges of approximately $27 million related to these actions in the third quarter which includes approximately $17 million of cash expenditures. These charges consist of severance and other employee related costs, asset impairment charges and other expenses related to the closure. The company anticipates improving financial results by approximately $7 million annually, beginning in 2016.
"Tenneco is an $8.4 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 29,000 employees worldwide. Tenneco 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, and the aftermarket. Tenneco’s principal brand names are Monroe®, Walker®, XNOx™ and Clevite®Elastomer."
From Marzocchi UK: