CLERMONT-FERRAND, France (July 27, 2000) — Group Michelin has confirmed it is discussing possible areas of cooperation with Shanghai Tyre & Rubber Co. Ltd., Shanghai, China.
No definite agreement has been signed and Michelin declined to comment on reports in Chinese media that the French company has agreed to own a majority of the joint venture.
Shanghai Tyre has six plants and reported sales of $364 million in 1999.
If Michelin and Shanghai Tyre reach an agreement, it would be Michelin´s second joint venture in China. The first was Michelin Shen Yang Tyre Co., established in 1996.
Michelin Chairman Edouard Michelin has said the company´s goal is to be Asia´s No. 2 tire maker by 2005. Michelin currently has plants in Japan, Thailand and the Philippines with another one planned for India.