Auto parts maker Cooper Standard to restructure in Europe
Michigan-based auto parts maker Cooper Standard Automotive Inc. plans to downsize its European manufacturing footprint.
A statement from Cooper Standard Holdings Inc., Cooper Standard’s parent company, said the restructuring effort is to improve its European capability by removing excess capacity, improve cost structure and shift some production to its Eastern European facilities.
According to Cooper Standard, the restructuring is projected to cost about US$120 million over the next three years. The firm projects about US$50 million in annual savings after its expected completion in 2017.
The plan includes closures or downsizing unnamed facilities with high costs and unutilized capacity in Western Europe. Cooper Standard did not specify what facilities or the number of employees that would be affected, but highlighted Germany and France as countries that could be affected.
“Restoring our competitive position in Europe is critical to our strategy of driving profitable growth and becoming a top 30 global automotive supplier,” chairman and CEO Jeffrey Edwards said in the statement. “A healthy European business is also essential to ensuring that Cooper Standard is properly positioned to support our local and global customers.”
Cooper Standard is a global supplier of systems and components for the automotive industry. Products include sealing, fuel and brake delivery, fluid transfer, and anti-vibration systems. The firm employs more than 27,000 people with operations in 20 countries.