Cooper signs JV with Mexican company; finalises production arrangement

Findlay, Ohio -- The Cooper Tire & Rubber Company has announced that it has entered into a 50:50 joint venture with Mexican tyre manufacturer Corporación de Occidente SA de CV and finalised a production arrangement for radial passenger tyres.

Under the name Cooper Tire & Rubber Company de Mexico SA de CV (Cooper Mexico), the company will be responsible for the marketing, sales and distribution of the Cooper and Pneustone brands, as well as all other associate brand tyres marketed by the two partner companies.  

“This is a great opportunity to grow the Cooper brands in Mexico,” said Phil Caris, vice president, Sales and Marketing, for Cooper Tire's North American Tire Division, in a 1 Oct statement. “By partnering with Occidente, we gain access to retail channels in Mexico and leverage existing relationships that Pneustone Brand has established with dealers throughout that country,” he added.

“Our existing customers in Mexico will benefit with the localised warehousing and increased focus on that market,” said Caris.

In a related move, Cooper Tire has finalised a production arrangement with Corporación to produce certain radial passenger tyres in their production facility in Guadalajara, Mexico. The sourcing will be arranged in three phases, with a gradual ramp up to a targeted unit volume of nearly 2.5 million units per year, according to the company's statement. Tyre production is expected to begin in the fourth quarter of 2007.

The new company -- “Cooper Mexico” will be based in Querétaro, Mexico, with Jim Smith, who was plant controller at Cooper's Texarkana, Arkansas tyre manufacturing plant, taking on the role of general director.

Assisting Smith will be Chris Barbara, who will take up the position of director of marketing, and Hugo Ybarra, who is the newly appointed director of sales.

The Pneustone brand is the house brand of Corporación, a subsidiary of the Mexican holding corp. -- Grupo Dexel. (ss)