Cooper Tire & Rubber Company has entered into an agreement to purchase a majority of China-based Qingdao Ge Rui Da Rubber Co., Ltd. (GRT).
Accofrding to reports Cooper will own 65 per cent of the entity, which will be renamed Cooper Qingdao Tire Co., Ltd. (CQT).
Cooper is set to spend $93 million including the acquisition and initial investments in the operation. The transaction is expected to close during the first half of 2016 pending certain permits and approvals by the Chinese government.
CQT is expected to serve as a global source of truck and bus radial (TBR) tyre production for Cooper including Roadmaster brand tyres for the North American market as well as TBR tyres
for Asia and other markets.
Passenger car radial (PCR) tyres may also be manufactured at the facility in the future. It is estimated that at full capacity, CQT will be capable of producing approximately 2.5 million to 3 million TBR tires annually and nearly the same number of PCR tires within the existing one million-square-foot production facility, with room for further expansion at the location.