Cooper to take full ownership in Mexican tire manufacturing facility
Cooper Tire & Rubber Company is set to take full ownership in Corporación de Occidente (COOCSA), its joint venture tire manufacturing facility in Mexico with Trabajadores Democraticos de Occidente (TRADOC).
Currently, the Ohio-based tire manufacturer has 58% ownership in the Mexican tire manufacturing facility.
TRADOC, which owns 42% in COOCSA, will sell its stake to Cooper Tire & Rubber Company for an undisclosed price. A majority of TRADOC members have voted in favor of the agreement.
Brad Hughes – President and CEO of Cooper Tire & Rubber Company said: “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.
“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.”
Subject to government approval as well as other customary closing conditions, the deal is likely to be wrapped up in early 2020. Until then, operations at the COOCSA tire manufacturing facility, which manufactures passenger car and light truck tires, will continue as usual.
Cooper Tire & Rubber Company and TRADOC have been partners since 2008 in the Mexican tire manufacturing facility, located near Guadalajara.