Doublestar plans to acquire tire maker Hengyu Technology, currently undergoing bankruptcy restructuring, for 899 million yuan, according to Doublestar's latest annoucement on March 15.
The investment will go through Jixing Tire, a subsidiary of Doublestar, said the company’s announcement.
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.
The capacity at Dongying could be respectively raised to 800,000 and 10 million when a facility upgrade is completed, Doublestar said.
After construction, Doublestar would integrate Doublestar、Kumho and Hengyu's capacities, and bring them into fullest play in the future.
