Cooper Tire and Sailun Announce JV for New TBR Tire Plant in Vietnam

Cooper Tire & Rubber Company (NYSE: CTB)  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.

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.”

Category: General Update, News, Wheels & Tires