CHANG CHUN, China—Italy's Pirelli S.p.A. is at an advanced stage of negotiations with officials of China's Jilin Province about creating a joint venture to operate the tire plant built four years ago in Chang Chun with Pirelli technical assistance. The proposed joint venture would include measures to double the capacity of the car and light truck tire plant to 1.5 million units/year, according to Pirelli. The parties had hoped to conclude an agreement by year's end; Pirelli said the size of its share in the venture still was under negotiation. If concluded, it would be Pirelli's first ownership interest in a Chinese tire plant.
SHANGHAI, China—Chinese and international media report Haikou Tyre Factory on China's Hainan Island has been declared bankrupt, and is to be absorbed by Shanghai Tyre & Rubber Co. Ltd., maker of Double Coin brand tires.
Haikou Tyre Factory is a 40-year-old maker of bias-ply tires and is not affiliated with Haikou Radial Tyre Co., a Pirelli-supported project for 800,000 car and light truck radials per year, which originally was due to begin production by year-end 1996.