Cooper Steel Cord Plant Share Included in ArcelorMittal Purchase
The acquisition of steel cord manufacturer Rongshen Chengshan Steel Cord by ArcelorMittal, announced on October 15, includes the 25 per cent stake in the Chinese company held by a wholly owned local subsidiary of Cooper Tire & Rubber. Cooper has disclosed it received US$7.4 million for its quarter share, which the manufacturer parted with in order to place a greater focus upon its core tyremaking business.
Cooper Tire’s acquisition of 51 per cent of Cooper Chengshan (Shandong) Passenger Tire Company, Ltd., and Cooper Chengshan (Shandong) Tire Company, Ltd., was completed in early 2006 and included a 25 per cent ownership position in the steel cord factory, which is located adjacent to the tyre manufacturing facility in Rongcheng City, Shandong Province.
In commenting on this sale, Cooper Tire President and CEO, Roy V. Armes, said, “We continue to divest our interest in what we consider non-core businesses, which includes the steel cord business. While it was not considered a core product for Cooper, it did provide a steady supply of quality steel cord to support our Chinese manufacturing facilities. This is a continuing effort by Cooper to focus on our core tyre manufacturing and marketing efforts. The new owner will remain one of our key suppliers of steel cord.“