Novi, Mich.-based Cooper-Standard Holdings Inc. said Jan. 21 it plans to consolidate its operations in Europe, including reducing manufacturing in France and Germany and moving some production to Eastern Europe.
“Restoring our competitive position in Europe is critical to our strategy of driving profitable growth and becoming a top 30 global automotive supplier,” said Jeffrey Edwards, chairman and chief executive officer. “A healthy European business is also essential to ensuring that Cooper-Standard is properly positioned to support our local and global customers.”
While the company did not provide specific details, it said “actions include consolidation of operations to improve efficiencies and closure or downsizing of certain facilities with high costs and unutilized capacity in Western Europe, including Germany and France.”
It said the actions are subject to consultations with employee works councils, and said they will cost the company $120-$125 million over the next three years. After they're completed in 2017, the company said the consolidations would save it $50-$55 million a year.
Cooper-Standard makes seals and other functional parts for the auto industry using both rubber and plastic. Automotive News, a sister publication of Plastics News, ranked it at 67 on its list of the largest auto suppliers globally, 40th among auto suppliers in North America and 49th among European suppliers.