Cooper Tire & Rubber Co. will invest $31 million in a tire manufacturing facility in Guadalajara, Mexico.
The facility will be jointly owned by the following three parties:
1. Cooper Tire (38%),
2. IBSA (a Mexican holding corporation), and
3. Cooperativa TRADOC S.R.L. (employee owners of Corporación de Occidente SA de CV).
"This is an important step in the implementation of our strategic plan and our access to cost-competitive sourcing," says Cooper Chairman, CEO and President Roy Armes.
"Securing access to a steady source of supply to supplement the production of our U.S. facilities and meeting the customer's demands in the North American market is critical to our success. Further, this will help us facilitate penetration in the Mexico market with our Cooper brand."
In October 2007, Cooper announced a 50-50 joint venture to form a trading company with Nemet International SA de CV, responsible for the marketing, sales and distribution of the Cooper and Pneustone brands in Mexico. This trading company will continue to operate as a separate entity.