Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
January 18, 2016 01:00 AM

Cooper stakes out Chinese tire maker

Bruce Davis
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    FINDLAY, Ohio—Cooper Tire & Rubber Co. is buying a 65-percent stake in China's Qingdao Ge Rui Da Rubber Co. Ltd. (GRT) for about $93 million and plans to source its Roadmaster radial truck and bus tires from GRT's plant in Pingdu, Qingdao Province.

    The deal is expected to close during the first half of 2016 pending certain permits and approvals by the Chinese government, Cooper said. GRT was founded in 2014 by Qingdao Yiyuan Investment Co. Ltd., which purchased the assets of the then-idled facility. Prior to that it was known as Qingdao Guang Ming Tire Co. Ltd.

    The new venture will be called Cooper Qingdao Tire Co. Ltd. (CQT) once the deal closes, Cooper said. The transaction price covers the acquisition and initial investments in the operation.

    At full capacity, the factory will be capable of producing 2.5 million to 3 million radial truck tires annually, although it is producing currently at a rate of “several hundred thousand” units a year, Cooper Chairman, CEO and President Roy Armes said in a conference call with analysts.

    Cooper also said the venture may add passenger tires at some point, with an annual capacity similar to that for truck tires. Cooper already produces car tires in China at its Cooper (Kunshan) Tire Co. Ltd. subsidiary in Kunshan.

    “Cooper is excited to take this positive step to secure additional TBR tire supply and further our Asia growth strategy,” said Brad Hughes, chief operating officer. “After a comprehensive review of options, we are pleased to have reached this agreement, which meets our goal of finding a new source of high-quality, cost-competitive TBR tires for North America and Asia.

    “As we have previously stated,” he added, “achieving our goals for growth will likely require a series of actions and today's announcement is certainly a significant one.”

    Cooper sources its Roadmaster truck tires now from Prinx Chengshan (Shandong) Tire Co., its former joint venture manufacturing company with China's Chengshan Group Co. Ltd.

    Cooper's contract with Prinx Chengshan runs through mid-2018, and Cooper has to be prepared to shift fully away from that supply source by then, Mr. Armes told analysts. He acknowledged that extending the supply contract with Prinx Chengshan is a possibility, though.

    Cooper also expects to use the GRT factory to make Dean-brand truck tires for Asia and other markets in addtion to Roadmaster tires for North America. GRT's house brands are Myard, Golden Arrow and Idawall, but Cooper plans to re-evaluate the “brand landscape” once the joint venture is confirmed.

    Located roughly 80 miles northwest of Qingdao City. GRT employs approximately 600 workers, Cooper said, at a 1 million-plus-sq.-ft. plant.

    Chinese tire industry veteran Li Zhihua is the founder, executive director and general manager of Qingdao Yiyuan Investment (QYI), Cooper said, as well as a professor at Qingdao University of Science and Technology and a founding partner of Mesnac Co. Ltd., a Chinese tire-processing equipment maker with which Cooper does business.

    QYI has put in place at GRT an experienced management team backed by a skilled workforce with extensive tire industry expertise, Cooper said, with an initial focus on truck tires.

    “The team at GRT is very impressive, with deep industry and technical knowledge,” Mr. Armes said.

    “There's a strong workforce, facilities that we can continue to expand with further capital, and a management team that is focused on the current opportunity in TBR tires as well as our wider growth plans for Asia.

    “This is a great strategic fit within our existing and highly productive worldwide manufacturing network and will allow us to further optimize our global footprint....”

    GRT has sufficient space at its Pingdu plant to add production lines for passenger tires, Mr. Hughes said, but the elevated U.S. import duties on Chinese car tires reduces the urgency to act on this.

    Mr. Li added: “After a lengthy evaluation process to identify the best partner, we are pleased to team up with Cooper, a global tire industry leader with a 100-year heritage of success. We look forward to working with Cooper to maximize the opportunity we have together to drive continued innovation and expand manufacturing of quality TBR tires and other products.”

    CQT will become Cooper's eighth tire plant globally. Its others are in Findlay; Texarkana, Ark.; Tupelo, Miss.; Kunshan, China; Melksham, England; Krusevac, Serbia; and a joint venture plant near Guadalajara, Mexico.

    Cooper also recently set up a business relationship with Argentina's Fate S.a.i.c., calling for Fate to distribute Cooper brands in that country. At some point Fate could produce Cooper-brand tires at its plant in San Fernando under an off-take agreement, Cooper said.

    To reach this reporter: [email protected] crain.com; 330-865-6145; Twitter: @reifenmensch

    Related Articles
    Cooper Tire Chairman Armes to retire
    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
    TravelCenters rebuffs takeover bid by ARKO Corp.
    2
    Lambo picks Bridgestone for hybrid supercar Revuelto
    3
    SRNA to raise Falken PLT, TBR prices May 1
    4
    Michelin to support major tire-recycling initiative
    5
    Jiangsu GST's plant in Cambodia starting production
    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
    • Instagram
    • 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 © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION