China Manufacturers Alliance L.L.C. (CMA) will be able to distribute Warrior-brand passenger and light truck tires in North America in the coming years as a result of the joint Chinese manufacturing venture CMA's parent, Double Coin Holdings Ltd., signed recently with Group Michelin.
The joint venture, which also involves Double Coin's parent, Shanghai Huayi (Group) Co., is pending final approval by Chinese authorities and subject to further review, CMA said. Once approved, Michelin will own a 40-percent equity stake while Double Coin Holdings will hold the remainder as well as the rights to the brand.
The venture will operate a $491 million plant being built by Double Coin in Wuwei County, Anhui Province.
CMA recognizes this strategic partnership as the first step in the marketing of passenger and light truck tires from Double Coin Holdings into North America, said CMA Vice President Aaron Murphy, who added CMA anticipates the same level of interest from its customers for the new product line as for other Double Coin products.
Michelin and Double Coin/Shanghai Huayi signed a memorandum of understanding covering the venture April 18 in Paris.
It re-establishes a business relationship between Michelin and Double Coin about 14 months after Michelin bought out Double Coin's minority share of the Shanghai Michelin Warrior Tire Co. Ltd. venture they'd jointly owned since 2001.
The companies have not said what the joint venture will be called nor disclosed what Michelin's financial contribution will be.
Double Coin, the owner of the Warrior trademark, had granted Michelin last year the exclusive right to use the mark for its passenger car and light truck tire businesses for two years.
CMA already sells Warrior-brand truck tires in North America.