CLERMONT-FERRAND, France—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.