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 Mavis and Express Oil Change & Tire Engineers Are Merging

The owners of Mavis Discount Tire stores and Express Oil Change & Tire Engineers outlets have agreed to merge, creating an independent automotive service platform made up of more than 830 outlets in the U.S.

Nexen’s Roadian AT Pro RA8 SUV/light truck tire is available in P-metric sizes with a 50,000-mile mileage warranty and in LT-metric sizes with a 40,000-mile mileage warranty.
Product Nexen Offers Roadian AT Pro RA8 for Light Trucks and SUVs

The Roadian AT Pro RA8 from Nexen Tire America Inc. is an all-terrain light truck and SUV tire. It features an aggressive design that can tackle a variety of road conditions with ease.

News See Raybestos Website for 14 New Training Videos on Brake Repair

Fourteen videos demonstrating proper brake repair techniques from removing a caliper to master cylinder bench bleeds have been added to the Raybestos website.

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!