Cooper has signed an agreement to purchase
an existing tire plant in Kruševac, Serbia.
Situated to the south of the Serbian
capital of Belgrade, Kruševac “provides an
excellent location to supply tires to the
European and Russian markets,” according to
Hal Miller, president of Cooper’s
international tire operations.
The new wholly-owned subsidiary, which will
be known as Cooper Tire Serbia, will
complement the firm’s established European
operations and product offerings, including
the high performance tires manufactured at
the Melksham, England facility. “It is a
logical next step in the high quality,
cost-effective manufacturing footprint
underpinning Cooper’s strategy of
profitable top-line growth,” Miller
says.
Including an initial investment of about
€13 million and with the Serbian government
supporting the project in several ways, the
company plans to invest more than €50
million in the operations over the next
three years.
The support from the Serbian government
could total a possible €10 million if
certain goals are achieved, says
Miller.
“The Serbian government is very supportive
of this transaction and promoted the
benefits of the location, the labor force
and the competiveness in the region,” he
notes. “As a global tire company,
developing this well-situated source of
quality supply will benefit customers,
employees and our shareholders. We are
extremely excited about the momentum we are
building and the role this operation will
play in our future.”
In addressing the timetable for the new
factory, Julian Baldwin, vice president and
managing director of European operations,
says, “We look forward to working with the
experienced local work force in preparing
to produce tires in Krusevac. The plant
will initially employ 400, with plans to
grow to a production capacity of 3 million
tires with 600 to 700 employees within
three years. There is room for even greater
capacity with further investment in the
business.”
For more information, visit www.coopertire.com.
