Will Michelin Play a Role in New Double Coin Plant?
One year after their final break up, Double Coin Holdings and Groupe Michelin may be getting back together again for a project in China, reports Tire Review. The US publication says information originally published by SinoCast Daily Business indicates the two companies are in negotiations concerning Double Coin’s planned passenger car tyre plant in Hefei, China. Double Coin announced plans for the plant in December 2010. Michelin, according to SinoCast, denies details of one rumour that has it taking a 30 per cent share in the new plant, but has offered no other statement.
In early 2010, Double Coin, a partner with Michelin in the Shanghai Michelin Warrior Tire Co. passenger car tyre plant in Shanghai, formally ended its relationship with Michelin and sold its 30 per cent stake in that operation to Michelin. Last month Double Coin announced it would establish a passenger car tyre plant in Anhui Province with registered capital of RMB 1 billion (₤96.5 million) and capacity for 15 million radial tyres per year. The plant was estimated to cost RMB 3.183 billion in total (₤307.4 million), according to Double Coin, with RMB 1 billion coming from its own capital.