Michelin enters joint venture with Shanghai Tyre
Groupe Michelin has formed an alliance with Chinese tiremaker Shanghai Tyre & Rubber Co.
The companies will work together to build radial passenger, light truck and commercial truck tires in a $200 million joint venture called Shanghai Michelin Warrior Tire Co. Ltd.
Michelin owns 70% of the alliance, which has been in the works for more than two years. It is expected to produce five million passenger and light truck tires a year at full capacity, according to Michelin officials, plus 5,000 tons of steel cords.
The French manufacturer also will open a research and development center in Shanghai, though no date has been announced yet.
Shanghai builds and exports its Warrior brand passenger and light truck tires and Double Coin brand commercial truck tires to several countries, including the United States.