Cooper Tire & Rubber Co. plans to increase ownership in its Mexico joint venture passenger and light truck tire manufacturing facility, Corporación de Occidente S.A. de C.V. (COOCSA), from 58% to 100%.
Cooper and Trabajadores Democraticos de Occidente S.C. de R.L. de C.V. (TRADOC), which owns 42% of the joint venture, have entered into a definitive agreement under which Cooper will purchase TRADOC’s stake in COOCSA.
A majority of TRADOC members today voted in favor 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 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 optimize our global manufacturing footprint with cost-competitive production of quality tires to meet market demand, in this case throughout Latin America, as well as in North America,” said Cooper President & Chief Executive Officer Brad Hughes.
“We will continue to make investments to modernize the facility in the future as it produces millions of high quality tires. 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.”