Michelin stops Shanghai tyre plant -- update
Hong Kong--Michelin has said it is in the process of re-opening its joint venture factory, Shanghai Michelin Warrior Tyre. A spokesman said production at the plant was stopped "a few weeks ago" as part of a normal process to reduce excessive stocks. The spokesman said the company is now in the process of re-starting production and the plant is scheduled to be back on stream in the very near future. He said the plant had lost a total of two weeks' production, but declined to say how many tyres that represents.
Earlier, the South China Morning Post quoted executives from Michelin's joint-venture partner, Shanghai Tyre and Rubber, saying production had been suspended at the plant over a month ago. Michelin owns 70 percent of the JV, while STRC owns the remaining 30 percent.
Michelin said the stoppage came as a result of reduced car sales in China leading to reduced demand for tyres, and the stoppage was part of normal business practice in the region when inventories were too high.
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South China Morning Post (China) website (SCMP login required)
AFX (China) story