Cooper did not specify which plants would be impacted, but did say it is trying to avoid layoffs. The raw materials shortage comes primarily from oil-based synthetic rubber, production of which was slowed due to recent hurricanes along the Gulf Coast.
“The devastating hurricanes which hit the Gulf Coast areas continue to impact our suppliers’ ability to provide sufficient raw materials to maintain full production at Cooper’s U.S. facilities,” the company said in a statement. “Raw materials will be dedicated to those plants with products needed to meet customer needs. Labor schedules will be flexed at all plants as long as it remains necessary to allocate raw materials. By flexing work schedules and sharing time off, Cooper is attempting to avoid layoffs at any of the plants. This situation is dynamic and may change depending upon whether the availability of materials improves or diminishes. Employees are informed of work schedules as appropriate.”
Due to the production shifts, Cooper said it would take a $9 million to $11 million charge in the third quarter.
Goodyear, Michelin and Bridgestone/Firestone have been making similar changes in the wake of the sharp downturn in tire sales across North America and because of the raw materials situation. (Tire Review/Akron)