FINDLAY, Ohio (Sept. 29, 2005) — Cooper Tire & Rubber Co. said two of its three U.S. tire plants will operate on reduced schedules because of raw material shortages as a result of Hurricane Rita, taking about 30,000 tires a day out of production.
The Findlay-based tire maker said its plants in Texarkana, Ark., and Tupelo, Miss., will be on reduced production schedules beginning Oct. 2.
Cooper said several of its suppliers of carbon black and synthetic rubber were severely damaged and have not restarted operations following Hurricane Rita, which hit the Gulf Coast on Sept. 24. Also contributing to the shortage is access to roadways, which is being limited by authorities, and lack of rail cars as businesses compete for shipping alternatives, the company said.
“Materials currently in stock will be utilized for high-demand products and the current finished goods inventory levels should help maintain a steady flow of products to customers,” the company said in a statement.
Because of those inventory levels, Cooper estimates the only financial impact it will see from this move is the impact of reduced production.