Kuala Lumpur--Lion Forest Industries Bhd, parent of Lion Rubber Industries Sdn Bhd, has signed a joint venture with Chinese company to make Silverstone-brand tyres on behalf of Silverstone Corp. Bhd on the Chinese mainland. Both Silverstone and Lion Forest are members of the Lion Group of Malaysia
According to a statement made to the KL Stock Exchange, Lion Rubber Industries Sdn Bhd will take 75 percent of the shares in a new joint venture company with Chinese tyre manufacturer Shandong LuHe Group Co Ltd taking the rest. Total paid-up capital will be US$40 million (â‚¬30 million).
In a related deal, Lion Forest has created a new off-shore subsidiary, called Quay Class Ltd, which has, in turn, formed a technical agreement with Silverstone Corp., under which Quay and Lion Rubber will have access to Silverstone brand name and technology relating to car, light truck and truck tyres.
Lion already has a joint venture company in China, called Dong Feng Lion Tyre Co Ltd
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The Edge (Australia) story
The Star (Malaysia) report
Website of Silverstone unit in the Lion Group
Lion Rubber Statement to stock exchange