Cooper Tire is 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) tyres 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 per cent of the new venture. Total investment in facility and equipment in the joint venture is expected to be in the range of $US220 to $US240 million ($AU304 million to $AU332 million).
Construction of the facility is expected to begin early next year with tyre 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 tyre 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.”
“This is positive for both parties,” said Zhongxue Yuan, Chairman & President of Sailun Group Co. Ltd. “Our work with Cooper has been extremely productive. We are happy to expand our partnership with Cooper through this new TBR tyre production facility in Vietnam that will help both companies meet our customers’ needs for quality, cost-competitive products around the globe.”