Cooper Tire Acquires Assets of Serbian Plant

COOPER TIRE & RUBBER COMPANY CTB announced today it has signed an agreement to acquire the assets of an existing tire plant in Krusevac, Serbia. Located approximately 200 kilometers south of the Serbian capital of Belgrade, Krusevac, provides an excellent location to supply tires to the European and Russian markets. The new wholly-owned subsidiary, which will be known as Cooper Tire Serbia will complement Cooper's well-established European operations and product offerings, including the high performance tires manufactured at the Company's Melksham, England, facility. It is a logical next step in the high quality, cost-effective manufacturing footprint underpinning Cooper's strategy of profitable top-line growth. Including an initial investment of approximately EUR13 million and with the Serbian government supporting the project in several ways, the Company plans to invest over EUR50 million in the operations over the next three years. The support from the Serbian government could total a possible EUR10 million if certain goals are achieved. Hal Miller, President of Cooper's International Tire Segment, said, "The Serbian government is very supportive of this transaction and promoted the benefits of the location, the labor force and the competiveness in the region. As a global tire company, developing this well-situated source of quality supply will benefit customers, employees and our shareholders. We are extremely excited about the momentum we are building and the role this operation will play in our future."