Chinese JV exit gives Cooper Tire flexibility to plan for a changing tyre market

In recent weeks and months, Roy Armes has voiced on a number of occasions that Cooper Tire & Rubber still views China as an important part of the company’s future plans, despite its experiences at the Cooper Chengshan Tire (CCT) joint venture factory in 2013. Most recently, the chairman, chief executive officer and president confirmed during a conference call on 4 December that the country “will continue to be an important part of our long-term growth strategy.” But that doesn’t mean Cooper Tire can’t or won’t adjust its activities in China to meet global market conditions. In light of a new round of tariff measures in the US, which came into effect shortly after Cooper Tire sold its 65 per cent share in CCT, the company has shifted some of its production from China to other global locations, and it will continue to do so should conditions favour this strategy.