Analysts: Michelin/Double Coin JV dramatically increases Chinese tyre capacity
Following yesterday’s confirmation of the news that Michelin and Double Coin have entered into a China-based tyre production joint venture, financial analysts shared their views about how this fits into the French tyre giant’s wider strategy. According to Deutsche Bank, the new joint venture run plant is already being built and is expected to cost approximately 390 million euros. The analysts also confirmed earlier reports that the factory will have a capacity of 15 million units annually. For the time being the agreement remains subject to approval by the appropriate Chinese authorities.