Double Coin chairman removed over serious disciplinary violation

By Namrita Chow, ERJ correspondent

Shanghai, China -- A senior executive at China's Double Coin Holdings Ltd. (DCHL) has been removed from office due to what the company called a serious personal disciplinary violation.

Xian Fan, DCHL's director and chairman of the board, is suspected of being involved in serious breaching of policies and is under investigation. The outcome of the investigation will not impact the company, according to an official statement issued Aug. 6 on the company Web site.

The statement does not explain what policies Mr. Fan is suspected of breaching.

Double Coin declined to comment further on the situation.

The Shanghai-based tyre maker already has brought in at least one executive to take over Mr. Fan's roles.

CMA said Huayi Group, holding company of DCHL, has elected Liu Xunfeng as the new chairman of DCHL's board to replace Mr. Fan, “who had been in this capacity for the last eight years.” The company said Mr. Liu was previously president of Huayi Group and served on its board.

“As has been the case for some time, Mr. Yue Chunchen, general manager, continues to manage daily business operations of DCHL and its tyre subsidiaries,” CMA's statement continued.

It noted that, “as expected, no changes in business strategy or policy for DCHL or CMA will take place, and we look forward to working with our new chairman.”

While Double Coin is engaged principally in the manufacture and sale of tyres, the company also deals in soap, batteries and printing ink. In 2007 approximately 92 percent of the company's revenue was from tyres.

In a February 2007 interview with European Rubber Journal, Mr. Fan outlined a broad range of plans the company had to reach its goal of creating the world's largest radial truck and bus plant at its newest tyre factory in Rugao, China. Mr. Fan joined Shanghai Tyre & Rubber Co. Ltd. in 2000 from outside the tyre industry after working in the printing, battery and light product industries.

In 2007, Shanghai Tyre changed its name to Double Coin Holdings Ltd.

Mr. Fan holds a doctorate in economics from Fundan University in China, has an MBA in marketing and earned an undergraduate degree in mechanical engineering. At the time of the interview he was vice president of the China Rubber Industry Association and chairman of its tyre branch.

When he started at Shanghai Tyre, which is majority owned by the Chinese government, the company was nearly bankrupt. He told European Rubber Journal he began restructuring the operation, cutting payroll and installing new machinery.

Reflecting on a book he authored, “Thirty Years in Chinese Enterprise Management,” Mr. Fan said he believed that for a company to be successful, it must meet the requirements of the market and manage costs in order to obtain competitive pricing.

“If you want to survive, you need to change,” he said.

From Tire Business (A Crain publication)

Press release on Double Coin website (Translated by Google)