BREAKING: Cooper to keep Texarkana plant open

Cooper Tire has announced that it will keep its Texarkana plant open, and it will close the plant in Albany, Georgia. My thoughts and prayers go to the families affected by the plant closure in Georgia. We know this could have been us and we're grateful for our jobs.

This was a community effort, and lots of people deserve accolades for their work on this matter, including local leaders at Cooper Tire, Chamber officials Jerry Sparks, Jeff Sandford and David Haak, and local, state and federal officials, including Mayor Horace Shipp, everyone at AEDC, and Governor Beebe. Here's more from the Associated Press.

Update: Reasons why Albany was chosen:

In the 10 point study analysis, Albany fell far short of the other 3 plants in these critical areas:

• Closing Albany results in the largest and fastest savings due to its high variable costs.
• Albany’s last 12 months conversion costs are significantly (more than 20%) higher than the next highest plant.
• Albany’s best case, long-run conversion costs still do not eliminate the gap with other plants.
• Despite having the greatest improvement potential, Albany’s gap does not close in the long run when compared to the next highest cost plant.
• Georgia package was insufficient to overcome the cost differential.

Cooper says that even if:
•…100% flawless execution of $44 million in conversion cost improvement projects and…
•…15% of the workforce in Albany was reduced with the same amount of production and…
•…15% wage reduction and …
•…the Georgia financial package was $30 million…

The cost structure would not improve enough for Albany to remain open.

Update II: The current Albany production will be distributed to the other three plants, and the equipment from Albany will be moved in accordance with the remaining plants' needs, strengths and capabilities.

Update III:The company told workers today that the three remaining plants would move to around-the-clock production, seven days a week, and that staff may be added.