CCT Valuation Set at $440M, Chengshan Now on the Clock - Tire Review Magazine

CCT Valuation Set at $440M, Chengshan Now on the Clock

Now we know the valuation. Now we know the prices. And now we wait some more for resolution.

Cooper Tire & Rubber Co. late yesterday announced that its Cooper Chengshan (Shandong) Tire Co. (CCT) plant in Shandong province, China, was valued at approximately $440 million. The valuation came from an independent firm agreed on by Cooper and its joint venture partner Chengshan Group Co.

Now Chengshan Group has 45 days – until around Oct. 10 – to decide whether to buy out Cooper’s 65% share of the joint venture tire plant for an estimated $286 million, or sell its 35% to Cooper for an estimated $154 million, or leave things as they are and continue the troubled joint venture. If Chengshan Group decides to sell, Cooper will then have 45 days – until around Nov. 24 – to determine if it wants to buy out its partner.

It was a lengthy wildcat labor disruption at the joint venture tire plant last year – effectively cutting production of Cooper, Mastercraft and Roadmaster tires destined for the North American market – that helped derail Apollo Tyres’ run at acquiring Cooper. The labor strife also impacted Cooper’s ability to pull together necessary financial information to make its third quarter and year-end 2013 financial reports on schedule.

In January, after Cooper ended any deal with Apollo, the Findlay, Ohio-tiremaker signed a deal with Chengshan Group and the CCT labor union to determine the future of the Cooper Chengshan Tire Co. plant.

“We look forward to final resolution of the ownership of CCT as Cooper continues to pursue our growth plans for China,” said Cooper chairman, CEO and president Roy Armes. “Regardless of who owns CCT, Cooper is committed to continuing to build on the strong foundation we have in place in China by expanding our brand awareness and distribution network, and by growing profitable sales in the region through the original equipment channel and replacement tire market.”

You May Also Like

Yokohama Rubber reveals 2024 motorsports activity plan

Yokohama said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands.

Yokohama-Nitrocross

Yokohama Rubber revealed its motorsports activity plan for 2024. The company said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands and is again participating in a wide variety of motorsports events around the globe, from top-category to grassroots events.

Yokohama Rubber will again supply its Advan tires to many teams participating in motorsports events, such as Japan’s Super GT, the Nürburgring 24-Hour Race and the Pikes Peak International Hill Climb. Yokohama Rubber’s GeoLandar tires will be supplied to teams participating in off-road races in North America and Asia, including the Baja 1000, King of the Hammers, the Mint 400 and the Asia Cross Country Rally.

Autel Energy Showcases EV Charging Solutions, Electrified Bronco at CES

At CES, Autel Energy showcased its suite of EV charging solutions and an electrified 1969 Ford Bronco.

Autel-U.S.-Enters-EV-Charging-solutions-Industry
2019 Newsmakers: Bridgestone Americas

Nearly all products in the Firestone family of tires have been upgraded over the past three years, and Bridgestone is on track to have all of its consumer tire portfolio across both the Bridgestone and Firestone brands either upgraded or replaced by the end of 2020.

Bridgestone-Newsmakers-800x400
2019 Newsmakers: Nokian Tyres

Nokian Tyres opened its first U.S. manufacturing facility and launched numerous new products. See what’s in store for 2020.

Newsmakers-Nokian-800x400
2019 Newsmakers: Nexen Tire America

Nexen Tire opened its North American Technology Center and debuted the Roadian GTX. Find out what’s in store for 2020.

Nexen-Newsmakers-800x400

Other Posts

TIA’s Advanced Farm Tire Service training to take place in June

The training class for technicians in the agricultural and farm tire industries is set to take place June 11-14.

TIA_training-
Maxxis-sponsored athletes make podium, overall top 10 at Mint 400

Maxxis athletes Michael McFayden, Ethan Ebert and Trey Gibbs had podium finishes at the Mint 400 on Maxxis RAZR XT tires.

2024-mint400-maxxis
Sun Auto Tire reveals winner of Ford Bronco Sport giveaway

Lowell Anderson entered the giveaway at his local Sun Auto Tire & Service store while receiving a routine oil change.

Sun-Auto-Bronco-giveaway
Nokian Tyres holds bracket challenge on worst roads in North America

In 2023, the tiremaker’s audience voted Quebec as the province or state with the worst road conditions on the continent.

Pothole-Protection-from-Nokian-Tyres