Double Coin Tires and China Manufacturers Alliance, a tire manufacturer and marketer, announced that its parent company, Double Coin Holdings Ltd., and Shanghai Huayi (Group) Co. have signed a memorandum of understanding with Michelin to create a joint venture to produce Warrior-brand passenger car and light truck tires.
CMA manufactures and markets flag, associate and private brand products produced by Double Coin Holdings as well as from several other manufacturers. Flag and associate brands distributed by CMA include Double Coin and Warrior brands. Double Coin says the joint venture is in line with its plans to release a consumer tire line for the North American market in the future.
“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,” says Aaron Murphy, vice president of CMA. “CMA is excited about the opportunity to market products from the joint venture and anticipates the same level of interest from our customers as another high-quality product is offered by Double Coin.”
The joint venture is pending final approval by Chinese authorities and subject to further review. Once approval has been given, 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 $491 million plant currently is being built in Wuwei County, Anhui province, located at the Anhui Industrial Park.
