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Cooper Tire Announces Increased Investment in Manufacturing Facilities
FINDLAY, OHIO, JANUARY 16, 2004 - COOPER TIRE & RUBBER COMPANY (NYSE:CTB) today announced increased capital equipment investments in three of their four U.S. tire manufacturing facilities. This increase provides additional production capacity of more than 2.4 million units to meet the steadily increasing demand for the company’s tires. The $32.1 million investment will include the purchase of new tire building machinery and presses and add 116 additional manufacturing employees. The investment capitalizes on the company’s LEAN manufacturing initiatives contributing to higher efficiencies and improved quality.
The Albany, Georgia plant will receive an investment of $19.4 million and will include a new tread line, the addition of a sixteen press expansion and four new VMI tire building machines. The investment is part of Cooper’s continuing transformation to LEAN manufacturing cell concepts which yields higher levels of output and reduces waste. The results will net additional production capabilities of 1,390,000 on an annual basis. "Utilizing the cell production process, we will hire 56 new employees or about half the number required under traditional manufacturing methods to make this number of tires," stated Bill Woeste, vice president manufacturing. "Our investment allows us to address our customers’ needs along with continuous quality & productivity improvements which increases shareholder value."
In October, 2003, the company announced an outsourcing agreement with Chinese based manufacturer, Hangzhou, to make Cooper’s radial medium truck tires which are currently produced solely by the Albany plant.
The Texarkana, Arkansas facility is scheduled for a $5.2 million increase to boost production capacity. The investment will include eight new presses, additional tire building equipment and cell modification changes resulting in additional capacity of about 560,000 tires annually. Twenty-five additional manufacturing positions will be added. This equipment will allow the plant to make larger diameter UHP tires and will be installed in a modified LEAN cell for increased efficiency.
The Tupelo, Mississippi facility will benefit from a $7.5 million investment resulting in six presses being added, combining for an additional 511,000 units annually. Thirty-five new employees will be required to support the increased production volume.
Company Description
Cooper Tire & Rubber Company, headquartered in Findlay, Ohio, specializes in the manufacture and marketing of products for the global automotive industry. Products include automotive, motorcycle and truck tires, inner tubes, tread rubber and equipment, as well as sealing, trim, NVH control systems and fluid handling systems. Cooper has more than 20,000 employees and 51 manufacturing facilities in 13 countries. For more information, visit the Company’s web site at: www.coopertireandrubber.com or www.coopertire.com.
Company Contact: Patricia J. Brown, (419)424-4370