From Tire Review/Tyres & Accessories
FINDLAY, Ohio – Cooper Tire & Rubber Co. has moved to acquire Serbian tiremaker Trayal, including its existing passenger tire plant in Krusevac, Serbia.
Cooper says the Serbian firm’s acquisition is “a logical next step in the high-quality, cost-effective manufacturing footprint underpinning Cooper’s strategy of profitable top-line growth.” Including the initial investment of approximately 13 million euros and with the Serbian government supporting the project in several ways, Cooper plans to invest more than 50 million euros in the operations over the next three years. Support from the Serbian government could total a possible 10 million euros if certain goals are achieved, the tiremaker adds.
In addressing the timetable for the new operations, Julian Baldwin, vice president and managing director of Cooper European operations, commented, "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 three million tires with 600 to 700 employees within three years. There is room for even greater capacity with further investment in the business."
It is only a couple of years since the Trayal production lines stood still for several months and workers went on strike over unpaid wages, Trayal’s privatization and sale to Bulgarian power supplier Brikel EAD in 2006 delivered mixed results.
After this deal, Brikel retains a majority shareholding in Trayal’s truck and bicycle tire making businesses. Serbia’s government has also taken a 24 percent share in the company after agreeing to convert what Brikel owes in unpaid taxes into equity. The transaction is expected to close during the first quarter of 2012 and is subject to regulatory approvals, confirmatory due diligence and other conditions. (Tyres & Accessories)
