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Город: Москва
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Goodyear, Cooper deal creates tire production synergies

Goodyear officials tout that combining operations with Cooper Tire & Rubber Co. should yield $165 million in annualized savings within two years...


But during discussions with stock analysts and the press on Feb. 22, the day Goodyear's proposed $2.5 billion acquisition of Cooper was unveiled, it is clear that the combined manufacturing footprint will get much attention if the deal goes through. And with more than 50 manufacturing facilities worldwide and roughly 200 million units of annual tire production capability, there will be plenty of options to consider.

"While we didn't include any manufacturing synergies in what we released today, we do fundamentally believe that the two of us together can better manage and get increased productivity to deal with what we know is increased complexity in tire manufacturing and the tire manufacturing process," Richard Kramer, Goodyear chairman, CEO and president, said in a Feb. 22 call with the tire trade press."Cooper has some locations in some very low-cost sources that offer greenfield expansion as well, so as we go forward, we know that we have opportunity to optimize our combined manufacturing operations as well."

Akron-based Goodyear itself operates 33 tire factories in 20 countries on five continents, according to data collected by Tire Business. That includes eight in North America, four in Latin America, 11 throughout Europe, seven in Asia and three in the Africa/Middle East region.

For its part, Cooper has 10 manufacturing facilities, including three tire plants and a mixing/components factory in the U.S. Other wholly owned sites include tire plants in Mexico, China, England and Serbia. In addition, it has two joint venture tire factories, one each in China and Vietnam.

Mr. Kramer told stock analysts in a separate call that Goodyear expects to benefit from expanded scale in both manufacturing and distribution.

"We also expect long-term value creation in manufacturing as we look to standardize best practices across our combined worldwide factories," he said.