Cooper Tires Plans To Increase Ownership In Its Mexico Joint Venture To 100 Per Cent
Published On 27-Nov-2019 23:29:33
Pending government permission and additional conventional closing provisions, it can be expected that the deal will close in early 2020
The American tire manufacturer, Cooper Tires has recently revealed its strategy to expand control in the tire production facility, Corporación de Occidente S.A. de C.V. (COOCSA), to 100 per cent from 58 per cent. This facility currently belongs to its Mexico joint venture. The brand stated in a release that Trabajadores Democraticos de Occidente S.C. de R.L. de C.V. (TRADOC), holds possession of 42 per cent of the Mexico joint venture and have now enrolled into a reliable contract under which the American tiremaker will acquire TRADOC’s stake.
President & Chief Executive Officer of Cooper Tires, Brad Hughes 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.”
After the unfinished government permission and additional conventional closing provisions, it can be expected that the deal will close in early 2020.
“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,” added Hughes.
Functioning at the plant, which manufactures light truck and passenger car tires will remain to operate as usual without any hindrance. In addition to that, TRADOC and Cooper have been allies in the Mexico joint venture facility, since 2008, which is currently located near Guadalajara.