Cooper Standard Automotive has announced that it has signed a memorandum of understanding with Nishikawa Rubber providing for the expansion of the existing joint venture relationship between the companies. Cooper Standard and Nishikawa are currently partners in automotive sealing product manufacturing joint ventures in the United States and Mexico. They intend to broaden their relationship into a more global alliance that will enhance the capabilities of both companies to serve their global customers.
Under the memorandum of understanding, the next steps in expanding the relationship involve the sale by Nishikawa to Cooper Standard of a 20% interest in Nishikawa’s existing sealing business in Thailand and the subsequent sale by Cooper Standard to Nishikawa of a minority interest in Cooper Standard’s existing sealing business in Myslenice, Poland.
The parties are also restructuring their existing joint ventures in North America. Nishikawa has acquired additional shares in the US joint venture, returning to its original 60% majority position. Cooper Standard will increase its majority position in the joint venture in Mexico. All transactions are expected to be completed within the year. Both companies will continue to operate other sealing businesses outside of the framework of their global alliance.