It was a difficult birth. As regular visitors to this site are well aware, Qingdao Doublestar Co Ltd.’s acquisition of Kumho Tire was punctuated by more than its share of complications: Threats of mass resignations, bickering over brand name use and questions about financing all belonged to the experience.
Zhumadian, China – Doublestar has started up phase one of a scrap tire pyrolysis plant in Zhumadian, Henan province that is able to handle 100,000 tonne rubber or 10 million passenger car tires each year.
“The plant has been running smoothly for over a month,” said Doublestar Group chairman and general manager Chai Yongsen during his speech at the China Rubber Conference held in Guangzhou.
Qingdao Doublestar is to acquire Hengyu Technology for 899 million yuan (US$130m). As part of the purchase, the company plans to upgrade Hengyu Technology’s production equipment and streamline processes.
Guangrao County, where Hengyu Technology is based, is famously the tire capital of China.
Qingdao, China – Doublestar plans to acquire tire maker Hengyu Technology, currently undergoing bankruptcy restructuring, for €118 million (899 million yuan).
The investment will go through Jixing Tire, a subsidiary of Doublestar, said the company’s announcement on 15 March.
Hengyu currently has 650,000 unit annual truck and bus tire capacity and 6 million unit annual passenger car tire capacity on stream since 2015, Doublestar’s board office told ERJ.
Kumho Tire has appointed Jeon Dae-jin, currently senior executive vice president, as the new CEO.
During his 35-year tenure with Kumho, Jeon has held various leadership roles in compound research, technology development and bolstered the manufacturing process in an effort to increase productivity, efficiency, and effectiveness.
Kumho Tire has been struggling appoint new company leadership after its previous chairman left following Doublestar’s purchase of the company.
According to Kumho Tire, the company will not appoint a new chairman at its pre-scheduled March shareholders meeting. Vice president Jeon Dae-jin will continue as the acting CEO in the interim.
Local news reports cite Kumho insiders as saying that Doublestar is working on finding a suitable candidate, but is “struggling” to find someone with the right combination of skill. According to the reports, in December Doublestar offered the role to former Korea Development Bank (KDB) senior vice president Lee Dae-hyun, but he declined following opposition from Kumho Tire’s union.
QINGDAO, China — Qingdao Doublestar Tire Co. Ltd. plans to bring a highly automated “smart” car tire plant — dubbed the “Industry 4.0” high-performance green tire plant — on stream shortly, the company disclosed Dec. 21.
Qingdao, China – Doublestar will bring its ‘Industry 4.0 high performance green passenger car tire’ plant on stream shortly, the company announced 21 Dec.
The tire maker declined to provide further details – including about the start-up date – but indicated that it had completed trialling and optimisation phases on the €105 million (826.7 million yuan) project.
Construction work on the 6 million unit/year facility, located at Doublestar’s site in Qingdao, started in 2016.
Doublestar Group announced that it has completed an agreement with South Korea’s Korea Development Bank (KDB) to acquire a 45% stake in Kumho Tire for RMB 3.9 billion ($500M). By this, Doublestar becomes Kumho Tire’s controlling shareholder, while KDB and other Kumho creditors will remain the second largest shareholder with a 23% stake.
The year is barely 110 days old, and changes continue to happen within the tire industry at a breakneck pace.
First, Michelin North America Inc. and Sumitomo Corp. of America (SCOA) announced their intentions to combine Michelin’s wholesale distribution assets with TBC Corp., creating a 50/50 joint venture, National Tire Wholesale (NTW). The business, with 144 locations across North America, will distribute nearly 15 million tires.
Days later, Continental A.G. revealed it is considering restructuring to position itself for the upcoming disruption in the automotive industry.
In early March, Mavis Discount Tire and…