Cooper to close Albany plant

ERJ staff report (TB)

Texarkana, Arkansas -- Cooper Tire & Rubber Co. will close its Albany, Georgia, tyre plant following a capacity study of its US plants.

Cooper said the decision will affect its net profit by about $150 million to $175 million in restructuring charges. Annual savings are estimated at $75 million to $80 million. The facility, which employs about 1400, will close over the next 12 months, the firm said.

Cooper said it will realign the mix of products from Albany to its remaining three plants in the US to meet customer demand.

The Findlay, Ohio-based tyre maker will keep open plants in Findlay, Ohio; Texarkana, Arkansas; and Tupelo, Missisippi. The company first announced the decision in a conference call with employees, according to the Associated Press.

Union workers in Findlay voted recently to accept a pay cut. In Texarkana, the union voted to scuttle its current contract in favour of one in which workers would freeze salaries and make other concessions, the AP reported.

Cooper CEO Roy Armes said in a statement: “This was a difficult decision and we regret the impact it will have on our employees in Albany and the surrounding community. The detailed study we performed was fair, objective, and conclusive that we needed to consolidate our capacity and close one of our US facilities. The government and community agencies were actively engaged and involved and offered a high level of support, but the final outcome was clear.

From Tire Business (A Crain publication)

SEC filing from Cooper