French tyre manufacturer Michelin has launched a new joint venture in China in a bid to boost sales in the country.
The firm has signed an agreement with Double Coin Holdings and Shanghai Huayi (Group) Company in order to create a new venture which will produce and sell Warrior-brand vehicles for the domestic market.
Michelin will own 40 per cent of the business, Double Coin Group (Anhui) Warrior Tyres, with the remaining share of the firm set to be owned by its Chinese partners.
The three organisations will run a 3.5 billion yuan (£343 million) facility currently under construction in Wuwei, Anhui province, which will be able to produce around 15 million car and light truck tyres per year upon its completion.
As part of the agreement, which is subject to approval by the appropriate Chinese authorities, will contribute capital of 667 million yuan (£65.4 million) to the joint venture.
Posted by Danielle Barge