Cooper Tire Europe has announced an extension to its range of Zeon CS Sport UHP tyres. The five new sizes – four XL and one standard – are all rated A for wet grip on the EU tyre label, meaning that the CS Sport range continues to offer an A-rating across all sizes and speed variants.
Cooper Tire has released its 2013 third quarter financial report, carrying with it the scars of the failed Apollo Tyre deal and the linked issues with the Cooper Chengshan (Shandong) Tire Company (CCT) joint venture. Cooper could not report before now as a result of unrest and lack of cooperation at CCT’s Rongcheng facility in reaction to Apollo’s attempted acquisition. The company said that it will produce Q4 and full 2013 financial reports later in March.
It appears to be a case of once bitten, twice shy for Apollo Tyres. Following its experience with Cooper Tire & Rubber, and particularly its joint venture subsidiary Cooper Chengshan, the Indian tyre maker seems ready to give China a wide berth for the time being.
Tyre market revenues in Mexico grew at around 19 per cent compound annual growth rate (CAGR) between 2009 and 2012, according to a report published by Research and Markets.
The combination of Mexico’s relatively cheap skilled labour, proximity to the United States, membership of NAFTA and 12 free trade agreements with world’s growing economies such as EU, Japan, Canada, and the United States, are said to have made the country “an ideal production centre for automobiles and components”. However the report also suggests that the automobile population in Mexico is underperforming with only 275 cars per 1,000 people as of 2012.
Cooper Tire & Rubber Company has signed an agreement with Chengshan Group Company Ltd. According to the Findlay, Ohio-based tyremaker, the deal begins with the commitment that the Chinese joint venture Cooper Chengshan Tire (CCT) business will be independently valued and is said to position Cooper to resume regular financial reporting. Tyres & Accessories understands that the deal sets a floor value of at least US$435 million for the total company and perhaps more if the independent valuation comes in higher. Cooper’s share price rose 2.75 per cent (correct at time of publication) in response to the news.
Cooper Tire Europe’s 4×4 ambassador Xavi Foj took third place in the Dakar Rally, following an epic fightback. Foj has used Cooper Discoverer S/T Maxx tyres in the past three Dakar events, claiming T2 Class victories in 2012 and 2013. After a difficult opening to his 2014 Dakar campaign, including brake issues and an electronic problem, hopes of a hat-trick faded.
A securities class action lawsuit has been filed against Cooper Tire & Rubber and certain of the company’s senior executives by a number of investors. The lawsuit was filed in the US District Court for the District of Delaware. The complaint alleges that Cooper violated the federal securities laws by issuing a series of materially misleading statements and omissions in connection with the proposed acquisition of the company by Apollo announced on 12 June, 2013. In addition, the complaint alleges that Cooper misrepresented Cooper’s financial condition, financial prospects, and the effectiveness of the Company’s internal controls.
In order to consolidate its operations in the USA, UK, Slovakia and China into one single business unit, Mesnac has created a new global business, the Mesnac Tooling Division (MTD). This division will provide tooling support to Mesnac’s Tire Building machine divisions in China and Slovakia and to its subsidiary Beijing Jingyie. The division’s technology platform will be based on the established Wyko brand but will also control Mesnac’s other tooling brands, which are primarily sold in Asian markets.
Although production of Cooper brand tyres at the Cooper Chengshan (Shandong) Tire joint venture facility will soon recommence, Cooper Tire & Rubber has cautioned that returning to normal financial reporting may take a little longer.
Cooper Tire & Rubber Company is suggesting that production of Cooper branded tyres is set to restart at the company’s Cooper Chengshan (Shandong) Tire (CCT) joint venture facility in Rongcheng, China. Production was halted when the workers at the Chinese joint venture company became embroiled in a significant industrial dispute with the US firm linked to the erstwhile Apollo Tyres takeover bid.
As late as 15 November, Cooper Tire & Rubber wrote in a statement that it “continues to seek the expeditious closing of the merger with Apollo Tyres.” Yet Sunam Sarkar, chief financial officer at Apollo Tyres, opines that Cooper’s fidelity as a partner was in question from the very start – a point that only came to light later on.
While shares in Cooper Tire & Rubber have begun 2014 at roughly the same price they traded for a year earlier after climbing as high as $34.79 and dipping to $20.55 in between, former prospective purchaser Apollo Tyres’ share price has risen to an all-time high following the breakup of negotiations between the two companies […]
While it is clear that each side is effectively blaming the other for the collapse of the deal, the actual cost of the defunct courtship ritual is somewhat more opaque. We know that Cooper’s lawyers will be defending the firm against claims for the $50 million it agreed in the business equivalent of a pre-nuptial agreement, but several newspapers report that Apollo has to fight off claims for a significantly bigger $112 million break-up fee. And of course none of this puts a price on the large sums of money spent out on corporate lawyers or even more importantly on lost time. So what’s next for the two companies?
Genetic bioscience firm ParAridus has joined Cooper Tire & Rubber Company in the consortium sharing a US$6.9 million Biomass Research and Development Initiative (BRDI) grant toward development of guayule plant-based polymers for use in tyre manufacturing. According to the companies, he BRDI is a joint effort between the US Department of Agriculture (USDA) and the US Department of Energy (DOE) to promote development and analysis of feed stocks, biofuels and bio-based products. PanAridus replaces Yulex Corporation on the grant team, assuming Yulex’s responsibilities as the primary manufacturer of the material.
Cooper Tire Europe will help two very different teams to build on the success they experienced in the 2013 Dakar when the 35th edition of the event begins on 5 January in Rosario, Argentina. Catalan rally ace and Cooper Europe 4×4 ambassador, Xavi Foj is looking for his third successive T2 Production Class title on Cooper rubber, while the Race2Recovery team returns to build on its impressive achievements in 2013.
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