FINDLAY, Ohio, June 18 /PRNewswire-FirstCall/ -- Cooper Tire & RubberCompany (NYSE: CTB) today announced an agreement to invest in a tiremanufacturing facility in Guadalajara, Mexico. The facility will be jointlyowned by Cooper, IBSA (a Mexican holding corporation) and Cooperativa TRADOCS.R.L. (employee owners of the Occidente facility). Cooper ownership in thisfacility is 38 percent at an investment of $31 million.
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Cooper Chairman, President and CEO Roy Armes said, 'This is an importantstep in the implementation of our strategic plan and our access to cost-competitive sourcing. Securing access to a steady source of supply tosupplement the production of our U.S. facilities and meeting the customer'sdemands in the North American market is critical to our success. Further,this will help us facilitate penetration in the Mexico market with our Cooperbrand.'
Cooperativa TRADOC SCP President and Corporacion de Occidente VicePresident Jesus Torres Nuno added, 'This agreement highlights the importancefor the company to join with specialized labor with a commitment to high-quality products and efficiency. Further, as this alliance combines allparties' strengths, the factory is expected to be one of the most reliable andefficient plants in North America.'
Jose Antonio Suarez Hernandez, executive director of Corporacion deOccidente commented about the agreement, 'Cooper is definitely the 'worldclass' partner we were looking for to succeed in the global tire market. Thislong-term agreement will allow important synergies that will take our plant toa high efficiency level and the ability to become a quality producer for theworld market.'
In October 2007, Cooper announced a 50-50 joint venture to form a tradingcompany with Nemet International, SA de CV, responsible for the marketing,sales and distribution of the Cooper and Pneustone brands in Mexico. Thistrading company will continue to operate as a separate entity. This agreementwill also replace the offtake arrangement previously announced.
Corporacion de Occidente is the second-largest tire plant in Mexico, islocated on 17.3 acres, and currently produces 2.4 million passenger radialtires per year. Expansion plans are in place to bring that capacity to anestimated 4.6 million by year-end 2010, and 6.0 million units during 2011.Currently there are approximately 700 employees involved in manufacturing atthe facility.
Commenting further, Armes said, 'We believe this is another example of ourcommitment toward competitive cost manufacturing to improve our overall globalcost positioning of Cooper tires and, more importantly, improve ourcompetitive advantage in the North America market. We are pleased with thisopportunity and believe it moves us forward as a stronger competitor in anever-changing global market.'
About Cooper Tire & Rubber Company
Cooper Tire & Rubber Company is a global company that specializes in thedesign, manufacture, marketing and sales of passenger car, light truck, mediumtruck tires and subsidiaries that specialize in motorcycle and racing tires.With headquarters in Findlay, Ohio, Cooper Tire has 67 manufacturing, sales,distribution, technical and design facilities within its family of companieslocated around the world. For more information, visit Cooper Tire's web siteat www.coopertire.com.
SOURCE Cooper Tire & Rubber Company
