Relocation of Tenneco outside of the EU

28.10.2013

Question for written answer E-012294-13
to the Commission
Rule 117
Antonio Masip Hidalgo (S&D) , María Muñiz De Urquiza (S&D) , Salvador Garriga Polledo (PPE) , Willy Meyer (GUE/NGL) , Francisco Sosa Wagner (NI)

On 5 September 2013, legal representatives of the American shock-absorber manufacturer Tenneco told workers at its Gijón factory that the production plant owned by Tenneco Automotive Iberica S.A. had to close for strategic reasons. However, in a report dated 29 July, the company posted record results for the corresponding quarter, with an EBIT of USD 141 million and cash holdings of USD 133 million. Although the Gijón plant has always performed well, surpassing the company’s own forecasts in 2013 and demonstrating great flexibility by implementing wage cuts of up to 8%, the plant is to be moved outside of the EU to Russia or, after an initial transfer, to Poland.

Given that this American company’s European plants have benefitted from EU aid, what is the Commission’s view of its decision to move its production plant from Gijón to Russia?

What steps will the Commission take to boost local industry and employment in this particular case?

What effect might decisions such as this have on negotiations surrounding the trade agreement between the EU and the United States, which is intended to foster profitable industries on both sides of the Atlantic?

Does the Commission intend to make any legislative proposals in relation to the damaging issue of companies relocating outside of the EU?

OJ C 230, 17/07/2014