Reports indicate Cooper Tire & Rubber wishes to increase the share of its global sales generated in China from 25% to 30% in the next three years
"That’s our minimum target,” said Allen Tsaur, general manager for Cooper’s Asia operations during an interview with Reuters. “The Chinese domestic market is explosive and the pie is expanding. We have to grow fast to keep up the pace.”
Cooper’s sales in China are estimated to exceed $600 million this year, up as much as 20% from 2008, Tsaur told Reuters. Hopes are for 20% to 25% growth in 2010. Although the pace of growth in China’s automotive market is expected to slow following this year’s 40% rise in sales, the general manager expects sales to remain strong. Tsaur also expressed optimism about the replacement tire market’s prospects.
Cooper’s two China factories have a combined annual production capacity of 11 million units, and according to Tsaur, an additional million units will be added to passenger car tire capacity in 2010. "We are restrained by capacity, otherwise we could have grown much faster this year," he said. Any immediate increases in capacity will occur at existing plants rather than through the building of a greenfield facility, he added.
At present, Cooper exports 45% of its China production, yet Tsaur anticipates this ratio declining to 35% to 40% within three years, primarily because demand in the Chinese market is so healthy. Due to U.S. tariffs on consumer tires, exports to the U.S. would be halved as of the second quarter of 2010. The unutilized tires will be redirected to other export markets. (Tyres & Accessories)
