FINDLAY, Ohio (Sept. 9, 2004) — Cooper Tire & Rubber Co. will end production of inner tubes at its 48-year-old Clarksdale, Miss., plant by Nov. 12 because of a decline in demand.
Most of the facility's 159 workers will be laid off, Cooper said. About 30 of those workers will remain to produce curing bladders and operate a rubber mixing unit, which produces rubber for internal consumption at the company's other plants, according to a spokeswoman.
Those employees affected by the move already have been notified and will receive outplacement assistance from Cooper, the company said in a prepared statement. The firm also has notified its customers about the inner tube decision and has provided recommendations for alternative sources.
Cooper said the phase-out will cost about $9 million to cover the write-down of assets and the impacts of severance and other benefits. The company will record a charge of approximately $7 million during the third quarter of 2004 as a result of this decision.
Cooper said this decision supports its strategy to dedicate resources to those product categories that will help the business grow globally and provide shareholder value.