Cooper Review Decision Expected by January 19

According to one US newspaper, Cooper Tire & Rubber is expected to announce by January 19 which of its four US factories faces closure. The Northeast Mississippi Daily Journal reports that the unionised Findlay and Texarkana, and the non-union Albany and Tupelo plants have been, or are to be, visited by Cooper officials, with information packages on each facility to be delivered to the company by December 1.

Jim Keller, Cooper’s vice president of strategic initiatives, told more than 40 local, regional and state leaders in Tupelo on November 4 that the possibility of closing one of the plants “is something we don’t particularly like doing. We’ve done nothing like this before of this magnitude, and we’re really trying to make sure we make the right decision.” The Tupelo plant is one of the largest employers in the local area, with a work force of about 1,200.

Cooper will, says the news report, objectively review ten quantitative and qualitative criteria that fall into what Keller called four “buckets.” These include financial benefits, plant attributes, ease of implementation and labour and government relations. Cooper is asking local and state officials to offer ideas on helping to reduce labour costs, fixed asset expenses and capital expenditures. Any ideas received will be included in the packets due December 1. Keller said the company would review each of the proposals carefully and look at every possibility before making a decision.

The Rubber Manufacturers Association estimates that the US passenger car tyre replacement market will decrease by about one per cent this year and the replacement light truck tyre market by seven per cent. “We’re also seeing a sharp increase in the volume of imported tyres into the US, which also is affecting the industry,” said Keller.

Remaining competitive against these rivals lies at the heart of Cooper’s decision. “It’s about going against the rest of the world, like China and Korea,” he continued. “How do our plants stack up against global competitors in the long run – that’s what we’re up against. If we can’t compete against them, then it’s just a matter of time.”

Keller is reported to have said the company aims to make its decision before January 19, but it also could extend the deadline if needed.