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TENNECO SELLS PULP CHEMICALS BUSINESS TO STERLING FOR $202 MILLION; COMPLETES $3 BILLION RESTRUCTURING

TENNECO SELLS PULP CHEMICALS BUSINESS TO STERLING FOR $202 MILLION;
 COMPLETES $3 BILLION RESTRUCTURING
 HOUSTON, Aug. 21 /PRNewswire/ -- Tenneco Inc. (NYSE: TGT) announced the successful completion of its $3 billion restructuring program with the sale today of its pulp chemicals business to Sterling Chemicals, Inc., for approximately $202 million.
 The assets sold include sodium chlorate production facilities in Vancouver, British Columbia; Grande Prairie, Alberta; Thunder Bay, Ontario; and Buckingham, Quebec.
 Also included in the sale are ERCO Systems Group which licenses and constructs large-scale generators used by the paper industry to convert sodium chlorate into chlorine dioxide for pulp bleaching, a sodium chlorite manufacturing plant at Buckingham and the business headquarters building in Toronto.
 The pulp chemicals business was a unit of Tenneco's Albright & Wilson subsidiary.
 The company said its $3 billion in restructuring measures involved the sale of non-core assets valued at $1.5 billion, the issuing of $716 million of new equity, capital spending cuts of $350 million, other cost reductions of $300 million, and improved cash flow and retained earnings of $250 million from a reduction in the common stock dividend.
 As a result of these actions, the company's industrial debt ratio improved from 69 percent during the fourth quarter of 1991 to 57.7 percent at the end of the second quarter this year.
 "A $3 billion restructuring, completed in just over three quarters, was an ambitious undertaking, but necessary to our future," said Mike Walsh, Tenneco chairman and chief executive officer.
 "The completion of this restructuring and our strong second quarter earnings are major steps in rebuilding Tenneco," Walsh said.
 Tenneco is a Houston-based diversified industrial company with major business interests in natural gas pipelines (Tenneco Gas), farm and construction equipment (Case Corporation), automotive parts (Tenneco Automotive), shipbuilding (Newport News Shipbuilding), packaging (Packaging Corporation of America) and chemicals (Albright & Wilson).
 -0- 8/21/92
 /CONTACT: Christine LeLaurin of Tenneco, (office) 713-757-2761, or (home) 713-270-0880/
 (TGT STX) CO: Tenneco Inc.; Sterling Chemicals, Inc. ST: Texas IN: CHM OIL SU:


KD -- NY065 -- 2285 08/21/92 16:51 EDT
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Publication:PR Newswire
Date:Aug 21, 1992
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