Cooper Tire announces five-year plan in China

The US’s second-largest tire company, Cooper Tire & Rubber, announced its five-year plan in China on June 7, 2011 , hoping that tire sales in China will increase by 50% annually.

Cao Kechang, Cooper Global Vice President and General Manager of Asia Pacific Region, told the reporter that the company currently has two production bases. Among them, Cooper Chengshan (Shandong) Tire Co., Ltd. mainly produces high-performance passenger car radial tires, passenger cars and truck tires, with annual production capacity. 12 million or so. After acquiring a 51% stake in Chengshan Company in 2006, in March 2010, Cooper expanded its joint venture company's shares to 65%.

Another production base is Cooper Tire (Kunshan) Rubber Co., Ltd. In March 2011, Cooper increased the company's shares from 50% to 100%, becoming its wholly-owned holding company.

Cao Kechang said that in 2010, Cooper’s Asia Pacific region’s turnover exceeded US$1 billion, achieving a year-on-year increase of 37%. After the announcement of the establishment of the Asia Pacific regional headquarters in Shanghai in 2006, the company established the Cooper Asia Pacific Technology Center in 2008 to support the development and testing of the Chinese market and export overseas products.

Cao Kechang said that in the first five years, the company’s annual sales in China grew by about 30%. According to the internal planning of the company, sales growth in the next five years will be as high as 50% per year, compared to the average sales growth of 17% of the entire domestic tire companies.

He said that the current Kunshan base has an annual output of 5 million, plus 12 million in Shandong base, Cooper's annual domestic production is about 17 million, of which most of the products are exported to Europe and the United States.

Yang Lan, deputy general manager of Cooper Asia Pacific, also told reporters that the biggest problem is that exports from Europe, the United States and other places are not on the supply, while the domestic market, although large, and strong demand, but due to capacity constraints, even at full capacity Production is also in short supply.

However, Cao Kechang also emphasized that in the future, the company plans to reduce some of its exports overseas, mainly to domestic production. “For example, we will shift production capacity in North America to a factory in Mexico, while tires in South America will be supplied from a Brazilian base. In addition, tire supply in Europe will be mainly responsible for Eastern Europe. After all, tires still have a sales area problem. Can not always rely on Chinese exports."

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