Findlay, Ohio – Cooper Tire & Rubber Co. has completed the deal making its tire production venture in Mexico, Corporación de Occidente SA de CV, a wholly owned subsidiary.
Cooper raised its stake in Corp. de Occidente to 100% from 58% by buying the 42% stake held by its minority partner, Trabajadores Democraticos de Occidente SC de RL de CV (Tradoc), the company said in a 27 Jan release.
The financial terms of the deal were not disclosed.
Commenting on the acquisition, Cooper president and CEO Brad Hughes said the deal was part of the company’s strategic plan to optimise its global manufacturing footprint “with cost-competitive production of quality tires in key geographies.”
“We are excited to continue working with the team in Mexico as we look forward to enhancing the facility's global competitiveness in the tire industry," Hughes said.
Cooper and Tradoc set up the joint venture in El Salto near Guadalajara in 2008.
The venture's plant — originally a Continental AG factory that Conti closed in 2001 — is rated at 19,000 tires a day with roughly 1,100 employees.
A group of Mexican investors bought the facility from the German company and restarted production in mid-2005 using the Pneustone brand.