December 1, 2016 11:00 AM, EST

Cooper Tire Completes Purchase of Major Stake in Chinese Rubber Company

Cooper Tires

Cooper Tire & Rubber Co. completed its purchase of a 65% interest in China-based Qingdao Ge Rui Da Rubber Co., Ltd. under terms that were previously announced, the company said.

In January, Cooper reported it entered into an agreement to purchase the stake in China-based Qingdao Ge Rui Da Rubber Co. for about $93 million and would rename the business Cooper Qingdao Tire Co.

At that time, Cooper said the Chinese operation would serve as a global source of up to 3 million truck and bus radial tires a year, including its Roadmaster brand for the North American market as well as truck and bus radial tires for Asia and other markets.

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“Our partnership with GRT is an important step in Cooper’s strategic plan as it diversifies our truck and bus radial tires tire supply beyond a single source,” Cooper CEO Brad Hughes said Dec. 1 in a statement.

In the future, passenger car radial tires may also be manufactured at the 1million-square-foot GRT facility, which has room for further expansion, the statement said.

Cooper makes tires for heavy-duty trucks and provides tread rubber and other equipment for the retread industry, the company said.