Cooper Tire sells share in China JV

FINDLAY, Ohio  – Cooper Tire & Rubber Company (NYSE: CTB) announced that it has closed the sale of its 65% ownership in Cooper Chengshan (Shandong) Tire Company Ltd (CCT) to Chengshan Group Company Ltd. for approximately $262 million net of taxes and including dividends in accordance with the previously announced option agreement. Within the coming days, the company will file pro forma financial statements in conjunction with a Form 8-K related to the transaction with the US Securities and Exchange Commission (SEC).

"Resolving the ownership of CCT has been a key goal for us, and we are pleased to have it completed as we continue to execute our long-term growth plans for China,” said Cooper chairman, CEO and president Roy Armes.

CCT will continue to produce Cooper-branded products, including Roadmaster tires, through mid-2018. 

“The purpose of the offtake agreements is to provide a secure source of product while also allowing Cooper the flexibility to continue to identify and develop alternative sources for these tires. This could take a variety of forms including an agreement with another supplier, a joint venture, an acquisition, adding capacity to our other facilities, buying a facility and running it ourselves, or building a new plan,” Mr. Armes explained. 

“We have the financial capacity to take any of these paths or a combination that best serves our business and our customers,” he added.

Cooper will host a webcast on Thursday, December 4 at 4:30 p.m. EST to discuss the CCT transaction, the recently announced preliminary countervailing duties on certain passenger and light truck tires imported into the United States from China, and the potential financial and business implications of these matters. Within two hours following the webcast, it will be archived and available for 30 days at these websites.