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Michelin to own all of China JV

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PARIS (Aug. 31, 2009)—Group Michelin plans to buy the shares in its Chinese passenger tire joint venture, Shanghai Michelin Warrior Tire Co. Ltd., that it doesn't already own.

Chinese tire maker Double Coin Holdings Ltd. said it will sell its 28.5-percent stake in the joint venture, while Shanghai Minhang United Development Co. Ltd. will offer its 1.5-percent share at the same time.

Michelin bought 70-percent control of the venture in 2001 for $200 million. Double Coin and Michelin will continue to collaborate, and both companies said they consider this move to be the best approach to ensure Shanghai Michelin's sustainable growth.

Shanghai Michelin operates one plant in Shanghai, China, that produces radial car and light truck tires for both the Michelin and Warrior brands.

Double Coin said it believes the transaction is in the best interest of Shanghai Michelin's shareholders.

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