Continental AG has announced that it has signed a memorandum of understanding with Qingdao Doublestar Tire Industrial Co., Ltd of Qingdao, China. The memorandum expresses both companies' intention to found a tyre-manufacturing joint venture in the spring of 2005.
Conti expects to be the majority partner, according to a statement from the company, and the two companies expect to expand tyre capacity at Qingdao's existling location and to build a new plant to make passenger and light truck tyres
Conti said it expects the name of the company to be along the lines of "Continental Doublestar Co. Ltd". Dr. Hans-Joachim Nikolin, Continental Board Member who is responsible for the project said, "We have found Doublestar to be a company with a very good position in the market, and are confident that an alliance can be created that is profitable for both parties."
"We are full of confidence about the co-operation with Continental and we are sure that this will lead to a common successâ€, Ms. Song Xin, Board Member of Doublestar Group and responsible for the project said.
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Continental announcement (Germany)
China Daily (China) story