Cooper Reflects on Successful Market Debut in China

In general, the largest names in the tyre industry are not present at the China International Tire Expo. This year, however, one of the leading global tyre manufacturers brought its extensive range to CITExpo in Shanghai: Cooper Tire & Rubber. Since the establishment of two joint ventures in China the US based tyre company has also become a leading player in this particular market. As Cooper vice president and general manager for Asia Allen Tsaur emphasised when talking with Tyres & Accessories at CITExpo, the company wants in future to even more heavily focus upon the local Chinese market.

Cooper’s presence at CITExpo gave the exhibition a particular international flair. The quality and professionalism of the company’s stand lent the impression of stepping into one of the leading international shows. Hostesses in skimpy exhibition outfits guided visitors through the elaborate stand construction, which was divided into four zones in which Cooper displayed its various products and brands for the Chinese market. “Cooper Tires takes this opportunity to demonstrate the success we’ve achieved since Cooper Chengshan was established three years ago,” states Allen Tsaur at the stand’s official launch. In the past couple of years alone Cooper and its joint venture partner Chengshan has introduced 23 new products under five brand names – Cooper, Chengshan, Austone, Starfire and Dean. These new products made up the core of Cooper’s presentation at early September’s CITExpo.

At present the US tyre manufacturer has already introduced five Cooper treads designs in China. Of these high performance tyres, says Tsaur, who is also president of the joint-venture operation Cooper Chengshan (Shandong) Tire Company, the Cooper Zeon ASP and Cooper Zeon ATP are already manufactured in China. Further Cooper treads should soon follow; the company is being cautious to time their introduction right, however.

This also, incidentally, applies to the introduction of Cooper commercial vehicle tyres, which could be produced under the Cooper label in the Chengshan factory in Rongcheng (Shandong Province). When introducing a truck tyre onto the Chinese market, the manufacturer will surely profit from the reputation the Cooper brand holds there. On the other hand, Chinese trucks are more often than not ridiculously overloaded – many vehicles carry a cargo double or three times the allowed load. Whether Cooper truck tyres will deliver all they promise under such conditions remains questionable; damage to the company’s image could occur. “We have to wait for the right moment,” Tsaur continues.

Three tread designs in the Cooper “Starfire” passenger car tyre brand have already been introduced in China and offer high performance tyres for young car enthusiasts. Additionally, Cooper can profit in China from the Chengshan introduced “Chengshan” and “Austone” brands, which have been on the market for some three decades. Both brands have long been considered leading makes in China. The truck tyres are firmly established as original equipment products, as is the new Cooper truck tyre brand “Dean”, which was introduced into China in May 2008 and completes the US company’s multi-brand strategy in this market. The passenger car tyres Cooper delivers in China do not go to OEM customers.

The previously mentioned “success” that Cooper Tire & Rubber has had since the establishment of its joint ventures with Chengshan in early 2006 refers not only to the numerous production innovations coming today from the Middle Kingdom and influencing the tyre market – Alan Tsaur is also referring to the structural changes within the organisation and adjustments to production that have in the first place enabled Cooper to introduce a range for China. These are central components of the success of the US company in China within the previous 40 months.

Since May 2008 Cooper has, in Shanghai, operated a third global R&D centre. Around 30 engineers and technicians work in the “Asia Technical Center” on the further development of products for the local market. The other two centres are located in Akron (Ohio/US) and in Melksham. In addition, the joint venture factory has been ISO and “Lean Six Sigma” certified since its second year. “We are very proud and our brand has gained,” comments Cooper’s head in Asia. He adds: “Cooper Chengshan is getting mature in the past three years, thanks to the advanced corporate management concept, strong technology, research and development capability and rich experience in manufacturing management of Chengshan Group over thirty years.”

The two joint venture partners manufacture approximately ten million tyres per annum at the passenger car and commercial vehicle tyre factory in Rongcheng. In total Cooper has around 6,000 employees in China. This number, incidentally, includes workers at a second joint venture factory: Cooper Kenda (Kunshan) Tire Company. This business was officially established in the start of 2005. In the recently constructed factory in Kunshan (Jiangsu Province) some three million passenger car and light commercial vehicle tyres per year have been produced since 2007 – these tyres have been exclusively manufactured for the North American market. According to its arrangement with Cooper, the Taiwanese manufacturer Kenda – a relative newcomer to passenger car tyres – will produce its first own tyre there in 2012. In the meantime Kenda can however benefit from its technical cooperation with Cooper, Tsaur comments.

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