Under a new joint venture, Cooper Tire & Rubber Company and Sailun Vietnam Co. are to build a tire manufacturing plant that will have the capacity to produce more than two 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 venture. Total investment in the factory, including equipment, is expected to be in the range of US$220m to US$240m, funded through capital contributions and debt, with Cooper being responsible for its pro rata share.
Construction is scheduled 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 its 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 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., 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.”