Continental plans joint venture with Qingdao Doublestar

21st September 2004, Comments 0 comments

21 September 2004 , HANOVER - German tyre and automotive components concern Continental said Tuesday it signed a letter of intent with Qindao Doublestar Tire Industrial to establish a joint venture. Under the memorandum of understanding, the two companies aim to set up the joint venture in China in the spring of 2005, with Continental to hold a majority stake, the company said in Hanover. "We have found Doublestar to be a company with a very good position in the market, and are confident that an alliance c

21 September 2004

HANOVER - German tyre and automotive components concern Continental said Tuesday it signed a letter of intent with Qindao Doublestar Tire Industrial to establish a joint venture.

Under the memorandum of understanding, the two companies aim to set up the joint venture in China in the spring of 2005, with Continental to hold a majority stake, the company said in Hanover.

"We have found Doublestar to be a company with a very good position in the market, and are confident that an alliance can be created that is profitable for both parties," said Hans-Joachim Nikolin, Continental executive in charge of the project.

Song Sin, a board member at Doublestar, said "we are full of confidence about the cooperation with Continental and we are sure that this will lead to a common success".

As part of the deal, the "Continental Doublestar Co. Ltd" plans to expand the current tyre factory at Qingdao. The new company is also to built a new plant for passenger and light truck tyres.

Continental is a leading supplier of brake systems, chassis components, vehicle electronics, tyres and technical components with sales in 2003 of EUR 11.5 billion. Its worldwide workforce is some 73,000.

Qingdao Doublestar Tire Industrial Co., Ltd is a leading company in China's tyre industry with a huge distribution network both in China and abroad.

DPA

Subject: German news

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