Sailun Jinyu Group United with Cooper Tire to Expand Production

On December 12, Sailun Jinyu Group announced another explosive news that it would unite with Cooper Tire to form a joint venture with the capacity to produce more than 2.4 million truck and bus radial (TBR) tires annually in Vietnam.

Subject to closing and government approvals, the facility will be located near Ho Chi Minh City, Vietnam, at the site of Sailun Vietnam’s existing operations. Cooper will own 35 percent of the new venture. Total investment in facility and equipment in the joint venture is expected to be in the range of $220 to $240 million, funded through capital contributions and debt, with Cooper being responsible for its pro rata share. Construction of the facility is expected to begin early next year with tire production commencing in the first half of 2020.

Sailun Jinyu Group said that it will hold a 65% stake in the new company. The operating status of the new company will also be directly included in the financial statements of Sailun Jinyu Group. After the project is fully put into production, the newly added annual operating income is expected to be $279 million (about 1.939 billion MB) and the total newly added profit may reach $36.38 million (about 253 million RMB).

“The JV announced today is another step forward in Cooper’s strategy to expand and diversify our TBR tire production globally, giving us additional capacity to help serve our growing original equipment and replacement TBR business around the world,” said Brad Hughes, Cooper President & Chief Executive Officer of Cooper, “We are very pleased to build on the great relationship we have with Sailun to help us address opportunities in the global TBR market.”

Zhongxue Yuan, Chairman & President of Sailun Group Co. Ltd., said, “This is positive for both parties. Our work with Cooper has been extremely productive. We are happy to expand our partnership with Cooper through this new TBR tire production facility in Vietnam that will help both companies meet our customers’ needs for quality, cost-competitive products around the globe.”

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