HONG KONG-China Tire Holdings Ltd., the No. 2 tire maker in mainland China, is in the process of acquiring a controlling interest in two more operations and integrating another affiliated company into its holding structure. The resultant grouping would control production capacity of more than 5.2 million units a year, with another 3 million units being added. Bermuda-based China Tire, which itself is controlled by China Strategic Holdings of Hong Kong, recently struck a tentative deal with Yinchuan Rubber Factory whereby China Tire would invest about $9.38 million for a 51-percent share of a tire-making joint venture, Yinchuan CSI (Great Wall) Rubber Co. Ltd., that would include Yinchuan's existing tire plant, which makes radial auto and truck as well as aviation tires.
In November, China Tire offered $6.38 million for 51-percent control of Chongqing Tyre Chief Factory in Sichuan, which produces mainly motorcycle, bicycle and truck tires.
China Tire also plans to integrate a new radial passenger tire plant, Dalian International Nordic Tyre in Dalian, which also is controlled by China Strategic Holdings.
China Tire already has controlling interests in Double Happiness Tyre Industries Corp. Ltd. (formerly Taiyun Tire) and Hangzhou Zhongce Rubber Co. Ltd.