US based Cooper Tire is looking to move its production out of China following the sale of stake in a joint venture with Chengshan Group.
Previously the dispute at the joint venture, Cooper Chengshan Tire Company in eastern Shandong, China drove Apollo Tyres away which was planning to acquire the US based tire maker for $2.5bn, reported Financial Times.
Cooper Tire has already announced the sale of 65% stake in Cooper Chengshan (Shandong) Tire Company) to Chengshan Group for $262m.
Cooper Chairman Roy Armes said: "With the closing, offtake agreements go into effect under which CCT will continue to produce Cooper-branded products, including Roadmaster tires, through mid-2018.
"The purpose of the offtake agreements is to provide a secure source of product while also allowing Cooper the flexibility to continue to identify and develop alternative sources for these tires."
The company wants to assess risks properly this time around but considers China to be an important aspect of the company's long-term growth strategy, but it also plans to move production to countries such as Vietnam.
