Cooper Tire and Sailun Announce Joint Venture for New TBR Tire Plant in Vietnam
December 12 2018 - 7:30AM
Business Wire
Cooper Tire & Rubber Company (NYSE: CTB) today announced
that it has agreed to form a joint venture with Sailun Vietnam Co.,
Ltd. to build a manufacturing plant with the capacity to produce
more than 2 million truck and bus radial (TBR) tires annually.
Subject to closing and government approvals, the facility will be
located near Ho Chi Minh City, Vietnam, at the site of Sailun
Vietnam’s existing operations. Cooper will own 35 percent of the
new venture. Total investment in facility and equipment in the
joint venture is expected to be in the range of $220 to $240
million USD, funded through capital contributions and debt, with
Cooper being responsible for its pro rata share. Construction of
the facility is expected to begin early next year with tire
production commencing in the first half of 2020.
“The JV announced today is another step forward in Cooper’s
strategy to expand and diversify our TBR tire production globally,
giving us additional capacity to help serve our growing original
equipment and replacement TBR business around the world,” said Brad
Hughes, Cooper President & Chief Executive Officer. “We are
very pleased to build on the great relationship we have with Sailun
to help us address opportunities in the global TBR market.”
Zhongxue Yuan, Chairman & President of Sailun Group Co.
Ltd., said, “This is positive for both parties. Our work with
Cooper has been extremely productive. We are happy to expand our
partnership with Cooper through this new TBR tire production
facility in Vietnam that will help both companies meet our
customers’ needs for quality, cost-competitive products around the
globe.”
Forward Looking Statements
This release contains what the company believes are
“forward-looking statements,” as that term is defined under the
Private Securities Litigation Reform Act of 1995, regarding
projections, expectations or matters that the company anticipates
may happen with respect to the future performance of the industries
in which the company operates, the economies of the U.S. and other
countries, or the performance of the company itself, which involve
uncertainty and risk. Such “forward-looking statements” are
generally, though not always, preceded by words such as
“anticipates,” “expects,” “will,” “should,” “believes,” “projects,”
“intends,” “plans,” “estimates,” and similar terms that connote a
view to the future and are not merely recitations of historical
fact. Such statements are made solely on the basis of the company’s
current views and perceptions of future events, and there can be no
assurance that such statements will prove to be true.
These forward-looking statements include, among others,
statements regarding the company’s planned investments in the joint
venture, the expected timing of the completion of the transaction,
permits and regulatory approvals, expected synergies and benefits
of the transaction and expectations about future business plans and
prospective performance and opportunities. There is no assurance
that the potential transaction will be consummated, and there are a
number of risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements made
herein, including the timing to consummate the potential
transaction, the ability and timing to obtain required permits and
regulatory approvals and satisfy other closing conditions, the
company’s ability to finance planned investments in the joint
venture, and the company’s ability to realize the benefits
contemplated by the potential transaction.
It is not possible to foresee or identify all such factors. Any
forward-looking statements in this release are based on certain
assumptions and analyses made by the company in light of its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Prospective investors are
cautioned that any such statements are not a guarantee of future
performance and actual results or developments may differ
materially from those projected.
The company makes no commitment to update any forward-looking
statement included herein or to disclose any facts, events or
circumstances that may affect the accuracy of any forward-looking
statement. Further information covering issues that could
materially affect financial performance is contained in the
company’s filings with the U.S. Securities and Exchange Commission
(“SEC”).
About Cooper Tire & Rubber Company
Cooper Tire & Rubber Company (NYSE: CTB) is the parent
company of a global family of companies that specializes in the
design, manufacture, marketing and sale of passenger car, light
truck, medium truck, motorcycle and racing tires. Cooper's
headquarters is in Findlay, Ohio, with manufacturing, sales,
distribution, technical and design operations within its family of
companies located in more than one dozen countries around the
world. For more information on Cooper, visit www.coopertire.com,
www.facebook.com/coopertire or www.twitter.com/coopertire.
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version on businesswire.com: https://www.businesswire.com/news/home/20181212005377/en/
Investor Contact:Jerry
Bialek419.424.4165investorrelations@coopertire.com
Media Contact:Anne
Roman419.429.7189alroman@coopertire.com
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