FINDLAY, Ohio (Dec. 20, 2010)—Cooper Tire & Rubber Co. will increase its ownership of its affiliated Mexico operations on Jan. 1 to 58 percent, and doubling the share in a distribution company to nearly 100 percent.
The company said it will spend about $22 million to raise its stake in its Corporacion de Occidente S.A. de C.V. from 38 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.
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 the end of 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.