Cooper Tire Increases Mexico Investments
On January 1, Cooper Tire & Rubber increased its level of ownership in its affiliated Mexican operation from 38 to 58 per cent. The tyre maker states this increased ownership in Corporacion de Occidente SA de CV. has been made as part of its long-term strategy to produce high quality yet cost competitive products. As a result of this transaction, the Mexican entity will be fully consolidated in the company’s financial results for this year.
Cooper also intends to increase its ownership of Cooper Tire & Rubber Company de Mexico SA de CV., from 50 per cent to approximately 100 per cent. This entity conducts sales and marketing in Mexico and will continue to be fully consolidated. The increase in ownership is the result of a capital call by the entity and conversion of an existing loan into equity.
“We are extremely pleased with the opportunity to increase our ownership at these entities,” said Cooper Tire chairman, CEO and president Roy Armes. “This action aligns with the Company’s strategic plans and should allow us to continue investing and growing these important pieces of the Cooper organisation.”