Cooper Tire & Rubber Company has announced an agreement to form a joint venture with Sailun Vietnam Co., Ltd. to build a manufacturing plant with the capacity to produce more than 2 million truck and bus radial (TBR) tires annually.
Subject to closing and government approvals, the facility will be located near Ho Chi Minh City, Vietnam, at the site of Sailun Vietnam’s existing operations. Cooper will own 35% of the new venture. Total investment in facility and equipment in the joint venture is expected to be in the range of $220 to $240 million, funded through capital contributions and debt, with Cooper being responsible for its pro rata share. Construction of the facility is expected to begin early next year with tire production commencing in the first half of 2020.
“The JV announced today is another step forward in Cooper’s strategy to expand and diversify our TBR tire production globally, giving us additional capacity to help serve our growing original equipment and replacement TBR business around the world,” said Brad Hughes, Cooper’s president and CEO. “We are very pleased to build on the great relationship we have with Sailun to help us address opportunities in the global TBR market.”
Zhongxue Yuan, chairman and president of Sailun Group Co. Ltd., said, “This is positive for both parties. Our work with Cooper has been extremely productive. We are happy to expand our partnership with Cooper through this new TBR tire production facility in Vietnam that will help both companies meet our customers’ needs for quality, cost-competitive products around the globe.”