Kenda: Plant sale will help the company grow
The announcement on Thursday, March 3, 2011, that Cooper Tire & Rubber Co. bought out Kenda Rubber Industrial Co. Ltd.'s 50% share in their joint venture plant in Kunshan, China, came from Cooper.
(For more information from Cooper's perspective, click on "Cooper buys out Kenda's share in Chinese plant.")
Kenda recently released its own statement, which shines more light on the $116.5 million buyout.
Kenda said the operation "currently manufactures only Cooper passenger and light truck tires, along with some of Cooper's affiliated brands, and has no impact to the current supply of Kenda products."
Jimmy Yang, president of Kenda USA, said the move was a good one for the company.
"With Kenda’s new automotive tire plant in Taiwan scheduled to open later this year, we believe the transaction will allow Kenda to increase investments in our future growth." Yang also described the relationship with Cooper was mutually beneficial.
“We’re excited over the possibilities this will offer Kenda to continue to develop into a stronger brand," added Bob Phoenix, vice president of automotive sales for Kenda USA.
Kenda Rubber is the parent company of American Kenda Rubber Industrial Co. Ltd., which does business as Kenda USA. For more information about Kenda tires, visit www.kendatire.com.