Cooper looks to expand tyre capacity in low-cost countries

By Miles Moore, senior Washington reporter

NEW YORK (Feb. 29, 2008) - As Cooper Tire & Rubber Co. announced rejuvenated profits for the fourth quarter and full year of 2007, executives told analysts the company has a strategic plan to further strengthen the company over the next three to five years.

“We believe Cooper will further enhance its position as a winner,” said Cooper Chairman and CEO Roy Armes at a Feb. 28 teleconference in New York.

During the teleconference, Mr. Armes and other Cooper executives discussed in detail the company's strategic plan to strengthen profits and market position worldwide over the next three to five years.

Major aspects of the plan include:

• Increasing Cooper's tyre capacity in low-cost countries from 18 percent now to 35-45 percent by 2012;
• Enhancing the company's core strengths, including strong US market share, customer satisfaction, speed to market, a high global footprint and a broad product and brand portfolio;
• Greater use of automation in manufacturing facilities;
• Consolidation of distribution in the US and Asia; and
• A reduction of the company's production development cycle by as much as 60 percent.

By 2012, the executives said, Cooper should have annual worldwide sales of $3.6 billion and an annual growth rate of 6 to 7 percent. This is double the projected tire industry growth rate during the period of 3.3 percent, Mr. Armes said.

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From Tire Business (A Crain publication)