Industry News

Cooper Tire Acquired Majority Stake in Qingdao Ge Rui Da Rubber Co. Ltd.

United States: Cooper Tire has recently acquired 65% stake in China’s Qingdao Ge Rui Da Rubber Co. Ltd. (GRT). The deal signed between the companies was worth USD93 million.

Currently, Qingdao Ge Rui Da Rubber Co. Ltd. is manufacturing truck and bus radial (TBR) tires for international markets, however, now the company would produce truck and bus radial (TBR) tires to meet Cooper tire demand across North America, Asia and other neighboring markets. Also, it is being planned that the Qingdao Ge Rui Da Rubber Co. facility would also produce passenger car radial tires, in coming years.

The company has already announced that the name of the China based facility would be renamed to Cooper Qingdao Tire Co. Ltd. Also, Cooper has predicted that the facility has production capacity of manufacturing almost 2.5 million to 3 million truck and bus radial (TBR) tires as well as the same amount of passenger car radial tires, annually.

As per CEO, President Brad Hughes “Our partnership with GRT is an important step in Cooper’s strategic plan as it diversifies our TBR tire supply beyond a single source. Cooper is committed to delivering high quality tires with superior value to our TBR customers. In addition to this exciting new partnership with GRT, we continue to actively evaluate other options around the globe for additional sources of supply. We are pleased with the team at GRT as they possess deep industry and technical knowledge and there is a strong workforce in place at the facility, which offers space for expansion to accommodate future growth. We are proud to welcome everyone at GRT into the Cooper family and look forward to many years of success together.”

As per TechSci Research, Cooper Tire is already a renowned brand not only in North America but across the global market, as well. Besides that, the acquisition by the company with Chinese tire player is anticipated to further expand the Cooper’s production capacity, which would assist the company to serve customer demand in a better possible way across entire North America. Eventually, the sale of Cooper tires in truck and bus as well as passenger car segment is estimated to hike, in approaching years.

According to a recent report published by TechSci Research, “United States Tire Market Forecast & Opportunities, 2021’’, demand for tires in the United States is forecast to grow at a CAGR of over 5%, in volume terms, during 2016-2021. The vehicle fleet of the country is dominated by passenger car segment, followed by light commercial vehicles, medium and heavy commercial vehicles, off-the-Road (OTR) vehicles and two-wheeler segment. As a result, the passenger car tire segment held the largest volume share in the country’s tire market in 2015, and its dominance is anticipated to continue during the forecast period as well. The vast demand for tires from these regions can mainly be imputed to the large automobile fleet size, high population density coupled with the rapid urbanization in the area.

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