Continental AG has signed a memorandum of understanding with Chinese tiremaker Qingdao Doublestar Tire Industrial Co. Ltd. with the intention of forming a joint venture in spring 2005.
"We have found Doublestar to be a company with a very good position in the market and are confident that an alliance can be created that is profitable for both parties," says Dr. Hans-Joachim Nikolin, the Continental board member in charge of the project.
Continental intends to hold majority interest in the venture, which will be called Continental Doublestar Co. Ltd.
Plans include a tire production capacity increase at Doublestar´s plant in Qingdao, China, plus construction of a new passenger and light truck tire plant.
