ERJ staff report (DS)
Beijing - Sailun Company has issued a document relating to an increase of share capital. The notice is in conjunction with the company's previously-stated plans to buy full control of Shenyang Peace Radial Tyre Manufacturing Co. Ltd. and a minority 49 percent stake in Shandong Jinyu Industrial.
Sailun aims to spend a total of some yuan 1200 million (euro 153 million) on the two purchases.
Jinyu has capacity for some 10 million passenger radial tyres annually. The controlling stake of 51 percent will continue to be owned by Kim Tire Group.
Shenyang Peace operates a truck tyre unit with a reported capacity for 1.2 million units/year of all-steel truck tyres.
Sailun reportedly operates 11 million units of car tyres at present, of which 2.5 million are radial steel car tyres; 8.5 million are semi-steel radial car tyres which is due to be fully on stream by the end of 2012.
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Issuance documents from Sailun (Chinese language)
News story from CRIA (Chinese language)
Above story auto-translated (from Chinese language)