Tire company building plant in China

<p>The Cooper Tire and Rubber Co. announced it will build a tire manufacturing plant in China, but the Findlay-based company said that wont reduce tire production at its U.S. factories.</p><p>Our tire business is extremely strong, Cooper spokeswoman Patricia Brown said on Wednesday. We need this capacity. It will actually be supplemental to our production. No (domestic) production is being lost.</p><p>But a union leader was critical of the move.</p><p>Frank Cline, president of United Steelworkers of America Local 207 in Findlay, said Coopers announcement boils down to one thing: cheap labor.</p><p>Ive never condoned current or future jobs leaving the borders of America, Cline said. He said China has cheap labor, slave labor, child labor.</p><p>The new plant will be built outside of Shanghai and be jointly owned by Cooper and the Kenda Rubber Industrial Co. based in Yuanlin, Taiwan, to produce radial passenger and light truck tires for export. Cooper did not disclose its investment in the joint venture.</p><p>All of Coopers U.S. tire plants in Findlay; Albany, Ga.; Tupelo, Miss., and Texarkana, Ark. produce some radial passenger and light truck tires.</p><p>Construction of the new plant should begin in mid-2004 and tires should be available in late 2005, the company said.</p><p>This is a significant step forward in our Asian strategy that we have been discussing for the past year, said Thomas A. Dattilo, Cooper chairman, chief executive officer and president.</p><p>That strategy is designed for both tires and automotive parts and in this instance will allow us to add capacity and lower costs in our tire business. It also gives us a base for sales in China down the road as the Chinese market increases significantly over the next decade.</p><p>Cline said the Findlay plant now will be competing with a Chinese manufacturer in the near future.</p><p>Will it (the Chinese plant) have an impact? Youre damn right it will, Cline said.</p><p>Currently, Cooper and Local 207 are in negotiations on a new contract. Hourly employees have been working under a day-to-day extension of the contract that expired Oct. 31.</p><p>Cooper has more than 20,000 employees in 52 manufacturing facilities in 13 countries.</p><p>Cooper produces automotive, motorcycle and truck tires, inner tubes, tread rubber and equipment, sealing, trim, NVH control systems and fluid handling systems.</p><p>Earlier this year, Cooper announced an agreement with another Chinese manufacturer, Hangzhou Zhongce Rubber Co., to produce radial medium truck tires for tractor-trailers.</p><p>Those tires will be produced in China instead of at Coopers Albany, Ga., plant. Cooper said the Albany plant would make more performance tires and specialty light truck tires, which are in high demand for use on pickups and SUVs.</p>

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