2nd Algerian tyre plant: Doublestar participating in JV
Buried within the more than 134 pages of Qingdao Doublestar’s latest semi-annual report is the news that the state-owned tyre maker will extend China’s ‘one belt, one road’ strategy by working with a local partner to establish a tyre production facility in Algeria. The Chinese-language document states that its subsidiary Hong Kong Doublestar signed a joint venture agreement with El Hadj Larbi Pneumatiques during the reporting period.
According to Doublestar, the plant will have the capacity to produce five million semi-steel radial car tyres a year and two million all-steel radial truck and bus tyres. The partners are investing US$250 million in the project; El Hadj Larbi will be the primary financial backer and is contributing $245 million. Doublestar will bring $5 million to the joint venture.
El Hadj Larbi and Doublestar will also set up a joint venture trading company in Dubai to sell the tyres produced in Algeria.