Cooper-Standard Holdings, the parent company of Cooper-Standard Automotive, says it will restructure its European manufacturing footprint based on current and anticipated market demands.
The restructuring effort aims to improve Cooper Standard’s European capability by removing excess capacity, improving cost structure and shifting some production to its Eastern European facilities.
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Actions include consolidation of operations to improve efficiencies and closure or downsizing of certain facilities with high costs and un-utilised capacity in Western Europe, including Germany and France.
Cooper-Standard expects to complete these restructuring activities by the end of 2017, while the moves are subject to consultation with employee works councils and other approvals.
“Restoring our competitive position in Europe is critical to our strategy of driving profitable growth and becoming a top 30 global automotive supplier,” said Cooper Standard chairman and CEO, Jeffrey Edwards.
“A healthy European business is also essential to ensuring Cooper Standard is properly positioned to support our local and global customers.”
Cooper Standard expects to recognise total expense related to these actions of around US$120m-$125m during the next three years.
The supplier anticipates these restructuring activities will provide around US$50m-$55m in annualised savings after completion.
