Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
February 26, 2020 06:53 AM

Cooper to raise investment in Mexico, Serbia tire factories

Bruce Davis, Tire Business, a US sister publication of European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Findlay, Ohio — Cooper Tire & Rubber Co. will ramp up its capital spending in 2020 in large part to upgrade and expand plants in Mexico and Serbia, where work already is under way to prepare them for additional production and product lines.

    Cooper anticipates making $260 million (€240 million) to $280 million in capital expenditures this year, the company told the investment community in a 24 Feb conference call covering the firm's fiscal 2018 performance.

    Cooper did not specify how much of this spending — up from $203 million in fiscal 2019 — would go to each plant.

    The two factories are being targeted following other company decisions in the past year that enhanced the tewo plants' importance to the firm's global manufacturing footprint.

    In Mexico — where Cooper recently completed a deal to secure 100% ownership of its former Corporación de Occidente SA de CV joint venture — Cooper has restarted production after first letting go then rehiring the factory's work force under the new ownership structure.

    Cooper said it expects to record roughly $10 million in restructuring charges in the first quarter related to transition changes at the El Salto, Mexico, plant.

    In the long term, the company said it expected to realise bottom line advantages from the changes in Mexico and at the Krusevac, Serbia, plant

    Cooper Tire President and CEO Brad Hughes said the restructuring charges will cover costs related to the hiring changes as well as for retraining the employees under production methods in place at other Cooper factories. At last report, the Mexican plant employed 1,100 hourly workers.

    Cooper raised its stake in the Mexican venture by buying the 42% stake held by its minority partner, Trabajadores Democraticos de Occidente S.C. de R.L. de C.V. (Tradoc), a workers' collective.

    Hughes also said the capital spending would cover the installation of new equipment tied to the introduction of new product lines at the plant.

    In Europe, Cooper is starting to ramp up production in the Krusevac factory of selected product lines moved there from the firm's plant in Melksham, UK, over the past year.

    Cooper will invest an undisclosed portion of the expanded capital spending there to support the expanded product range, Hughes said.
     

    RECOMMENDED FOR YOU
    Sentury announces ‘833plus’ global expansion 
    Sentury announces ‘833plus’ global expansion 
    Nokian expects to pay more for raw materials, logistics
    Nokian expects to pay more for raw materials, logistics
    Commercial Vehicle Show is back on 
    Commercial Vehicle Show is back on 
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac