Michelin, Apollo in India joint venture
CLERMONT-FERRAND, France-Group Michelin and India's Apollo Tyres Ltd. have agreed to set up a joint venture for radial truck tires in India.
The two firms will invest $70 million over the next four years to build a truck tire plant at an as-yet undisclosed site. Michelin will be the majority partner in the 51:49 joint venture, called Michelin Apollo Tyre Ltd.
The JV will encompass manufacturing, marketing and sales of truck and bus radial tires, as well as sales of other tire ranges, it added.
In addition, Michelin will buy a 14.9-percent stake in Apollo Tyres for $28 million and provide Apollo with technical support for the manufacture of Apollo passenger car radials. The deal means Apollo is cutting ties with Continental A.G., which had provided the Gurgaon, India-based tire maker with manufacturing technology for decades.
Apollo ranks as the 17th largest tire maker worldwide with 2002 sales of about $415 million.
Yokohama to build plant in Thailand
TOKYO-Yokohama Rubber Co. Ltd. plans to build a steel radial truck and bus tire plant in Thailand at a cost of nearly $50 million over 16 months.
The new plant, to be operational by April 2005, will have an initial annual capacity of 315,000 units, but this will be doubled by 2007 in a second-phase project, Yokohama said, without disclosing the investment projection for the expansion.
A new company, tentatively named Yokohama Tire Manufacturing (Thailand) Co., will operate the plant, to be built in southern Bangkok. Yokohama will own 95 percent of the new company, with the firm's local importer and distributor owning the remaining 5 percent.