Double Coin OKs car tyre project

ERJ staff report (TB)

Shanghai, China -- China's Double Coin Holdings Ltd. is moving ahead with plans to build a $475 million passenger/light truck tyre plant in Anhui Province designed to produce 15 million tyres a year at full capacity.

Double Coin, which is focused on commercial tyres after completing the divestment of its Shanhgai-based passenger tyre business last year to Group Michelin, has been evaluating an investment in the consumer tyre segment for some time.

This announcement, made in conjunction with the firm's parent company Shanghai Huayi (Group) Co., appears to confirm those plans.

Double Coin did not disclose where in Anhui Province it intends to build the plant or how long the project would take. Previously Double Coin officials had indicated the company would build the plant adjacent to or close to its existing factory in Rugao, in neighboring Jiangsu Province.

Double Coin said it hopes to raise $150 million of the necessary funding through internal financing and the remaining funds through bank loans. The firm also intends to seek $135 million in financing from Shanghai Huayi.

The new plant will operate under a new subsidiary company to be called Double Coin Huili Tire Co.

Double Coin is represented in North America by China Manufacturers Alliance L.L.C., based in Monrovia, Calif.

From Tire Business (A Crain publication)