Cooper Tire & Rubber Co. and Chengshan Group Co., in China, have extended the deadline to Aug. 24 for an independent company to provide a valuation of their partnership, Cooper Chengshan Tire.
The deadline extension is part of an agreement the two companies have made affirming and providing additional details to their plans to end or mend their partnership.
The valuation deadline has been extended because the independent company missed a deadline last Monday to assign a value to Cooper Chengshan Tire.
A value must be set before Cooper and Chengshan Group can decide whether one will buy the other’s interest or they will keep the current structure in which Cooper owns 65 percent.
“Resolving the future ownership of (Cooper Chengshan Tire) has remained a priority for our organization as we continue to move forward with our growth plans for China,” said Roy Armes, Cooper Tire chief executive officer. “Today’s announcement is another step in that process. As we have previously stated, Cooper is confident in our growth plans for China regardless of who owns (Cooper Chengshan Tire) in the future.”
Cooper Tire’s partnership with Chengshan Group suffered last year when the Cooper Chengshan Tire factory and its unionized workers sabotaged the proposed sale of Cooper Tire to Apollo Tyres of India.
The Chinese plant stopped producing Cooper-brand tires and withheld the plant’s financial information from Cooper Tire leaders.
Without the financial information, Cooper Tire could not release information about its performance in the third quarter of 2013.
That prevented lenders from releasing financing that Apollo needed to buy Cooper.
Since the Apollo deal unraveled, the Cooper Chengshan plant has resumed production of
Cooper tires and is releasing financial results.