Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Mid-Year Report
  • News
    • Aligning with ADAS
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
October 08, 2014 02:00 AM

Chengshan to buy Cooper's share of China JV

Tire Business staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Cooper Chengshan (Shandong) Tire Co. Ltd. photo

    FINDLAY, Ohio (Oct. 8, 2014) — China's Chengshan Group Co. Ltd. plans to exercise its option to acquire Cooper Tire & Rubber Co.'s 65-percent ownership stake in their Cooper Chengshan (Shandong) Tire Co. Ltd. venture, Cooper Tire said today.

    Cooper did not at this time disclose the value of Chengshan Group's offer. Earlier, though, an independent firm hired to establish the fair market value of Cooper Chengshan (Shandong) Tire determined the Chengshan, China-based joint venture was worth approximately $440 million.

    Cooper said it is reviewing the notice and documentation provided by Chengshan to confirm that all of the requirements under the August 14, 2014, option agreement have been met.

    Cooper also said the option agreement includes provisions for commercial offtake production by Chengshan of  Cooper-brand products — including Roadmaster truck tires — through mid-2018.

    CCT has a rated capacity of 15 million tires a year, including 5 million radial truck/bus and 8 million radial car tires, according to the venture's web site. Employment stands at more than 5,000. The plant has earned TS16949, ISO14001 status and the venture's tire testing center has and ISO17025 certificate.

    “Delivery of the exercise notice is one of several steps necessary prior to any transaction,” said Cooper Chairman, CEO and President Roy Armes. “Cooper is committed to meeting the needs of our customers and continuing to grow in China.

    Mr. Armes also said the purpose of the offtake agreement is to “assure a secure supply of Cooper-brand products, while also giving us the flexibility to enter into acquisitions, new offtake relationships, or possible greenfield development of additional production capacity anywhere around the world to support the continued expansion of our business.

    “China is a core growth market for Cooper and we have a strong track record of success in the region,” Mr. Armes added. “To support our strategic plans there, we expect to continue to invest in our sales and marketing organization, our rapidly growing distribution network, and the strong technology capability we have in place.”

    Mr. Armes also said Cooper expects to continue investing in its wholly owned Cooper Kunshan Tire operation.

    “We look forward to final resolution of the ownership of CCT as we continue to pursue our global growth objectives,” He added.

    Cooper did not indicate at this time what it would do with the proceeds of the transaction.

    One option Cooper might be considering would be to buy back shares, according to Robert Higginbotham, an analyst with New York-based SunTrust Robinson Humphrey Inc.

    Mr. Higginbotham also said SunTrust expects the offtake production deal could mean a negative impact on earnings of up to 5 percent.

    Related Articles
    Cooper eyes future in China after CCT sale
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Brison leaves Hankook for TireHub
    2
    ITDG CEO Dave Marks announces retirement
    3
    Yokohama spotlights growing UHP tire portfolio
    4
    Trelleborg eyes ag market growth in North America
    5
    Michelin to end tire production in Russia, transfer operations
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Mid-Year Report
    • News
      • Aligning with ADAS
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION