ZURICH, Switzerland (Aug. 23) — Cooper Tire & Rubber Co. is outsourcing maintenance operations at its Albany, Ga., tire plant to a unit of Switzerland´s ABB Ltd.
The five-year agreement with ABB Process Automation calls for ABB to assume responsibility of about 100 maintenance employees and all maintenance-related activities and equipment at the plant. ABB said its "full service" agreements typically improve productivity and equipment availability while reducing maintenance costs up to 20 percent.
"The ABB Full Service concept helps turn maintenance departments into profit centers," said Veli-Matti Reinikkala, head of ABB Process Automation. "By bringing proven best practices to the full spectrum of plant maintenance activities, we add new value to our customers´ bottom line while they focus on their core business."
"This service agreement is one of various strategic initiatives within Cooper Tire to improve manufacturing efficiency, product and customer mix, and market share," said Scott Jamieson, vice president of manufacturing for Cooper Tire.
"By entrusting plant maintenance operations to an established partner such as ABB, we can better focus on our core competence of manufacturing and marketing high-quality tires at competitive costs."
ABB said this agreement is its first in the North American automotive industry.