Cooper Tire to become 100% owner of Mexico JV tyre plant
Cooper Tire & Rubber Company intends to completely acquire its joint venture tyre manufacturing facility in Mexico. It currently holds a 58 per cent share in Corporación de Occidente S.A. de C.V. (COOCSA), but has entered into a definitive agreement with partner Trabajadores Democraticos de Occidente S.C. de R.L. de C.V. (TRADOC) to acquire its 42 per cent stake. On Friday, a majority of TRADOC members voted in favour of the agreement.
Pending government approval and other customary closing conditions, it is expected that the transaction will close in early 2020. In the meantime, operations at the facility, which makes passenger car and light truck tyres, will continue as usual. Cooper and TRADOC have been partners in the joint venture plant, which is located near Guadalajara, since 2008.
“Full ownership of COOCSA is an important step in our strategic plan to optimise our global manufacturing footprint with cost-competitive production of quality tyres to meet market demand, in this case throughout Latin America, as well as in North America,” said Brad Hughes, president and chief executive officer of Cooper Tire & Rubber. “We will continue to make investments to modernise the facility in the future as it produces millions of high-quality tyres. Cooper is thankful for the efforts over the past 11 years of our JV partner, TRADOC, and we look forward to continuing to work with them and everyone at the plant as we pursue what we are confident will be a successful future in Mexico.”