Retail

Cooper and Chinese partner extend deadline

Posted on August 15, 2014

Cooper Tire & Rubber Co. and its Chinese partner have extended the deadline for setting the fair market value of Cooper’s Chinese plant to Aug. 24, 2014.

Cooper announced it has reached an option agreement with Chengshan Group Company Ltd. (CCT) that extends the deadline to determine the plant's fair market value and affirms the process for determining the plant's ownership. The two companies first agreed to the process in January 2014.  

“Resolving the future ownership of CCT has remained a priority for our organization as we continue to move forward with our growth plans for China,” says Cooper Chairman, Chief Executive Officer and President Roy Armes.

“Today’s announcement is another step in that process. As we have previously stated, Cooper is confident in our growth plans for China regardless of who owns CCT in the future.”

Once an independent third party delivers a valuation of the plant:

* CCT has the first option, within 45 days, to elect to purchase Cooper’s 65% interest, to sell its 35% interest to Cooper, or not to exercise either of these options;

* If CCT determines not to exercise either of the options, Cooper has the right to purchase CCT 35% interest; and

* In the event that neither party elects to purchase the others’ interest, the joint venture continues as currently structured.

Should Chengshan purchase Cooper’s stake in the joint venture, Cooper will continue to have offtake rights with CCT agreeing to produce Cooper-brand products, including truck and bus radial tires, for a minimum of three years.

For other news on Cooper and CCT see:

Cooper: More time to decide CCT ownership

Cooper has a plan for ownership of Chinese plant

Related Topics: Cooper Chengshan (Shandong) Tire (CCT), Cooper Tire & Rubber Co., Roy Armes

Comments ( 0 )
More Stories
News Leeds West Groups Buys 42 Midas Locations

Leeds West Groups (LWG) is buying Auto Systems Experts (ASE), an employee-owned company based out of Davenport, Iowa, that operates 42 Midas locations in six states in the Midwest.

News Sumitomo Rubber North America Wins Technology Award for Mobile App

Sumitomo Rubber North America Inc. (SRNA) has won the 2017 Ventana Research Leadership Award in the Digital Technology category.

The DieHard Auto Center stores feature a clean, modern look, and offer consumers free WiFi access. The store in Detroit, Mich., is pictured.
News DieHard Auto Centers Update: Expect More DieHard Branded Stores and Tires

In June 2016, when Sears Holding Corp. announced it was attaching its iconic DieHard brand name to tires, the president of Sears Auto Centers told Modern Tire Dealer, “We will learn a lot over the next 18 months about the acceptance of the brand.”

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!