FINDLAY, Ohio (Dec. 20, 2010)—Cooper Tire & Rubber Co. will increase its ownership of its affiliated Mexico operations on Jan. 1.
It will spend roughly $22 million to raise its stake in its manufacturing venture Corporacion de Occidente S.A. de C.V. to 58 from 38 percent and doubling the share in a distribuition company to nearly 100 percent.
Cooper invested $31 million in June 2008 in Occidente's plant in Guadalajara and took a 38-percent share in the facility. The plant's other ownership entity is Cooperativa TRADOC S.R.L., the employee owners of the Occidente facility.
“This action aligns with the company's strategic plans and should allow us to continue investing and growing these important pieces of the Cooper organization,” said Roy Armes, Cooper chairman, CEO and president.
The deal means Occidente will be fully consolidated in Cooper's financial results starting in 2011. Cooper did not disclose Occidente's sales or earnings.
Findlay-based Cooper's investment was intended to help Occidente double its annual capacity to 4.6 million units by year-end 2010 and then boost it to 6 million units during 2011, the companies said at the time.
Boosting ownership in Cooper Tire & Rubber Co. de Mexico S.A. de C.V., a sales and marketing joint venture, is the result of a capital call by the entity and conversion of an existing loan into equity, Cooper said. It already is consolidated in Cooper's financial results.