Guizhou Tire Consolidates Radial Tires Position      

Guizhou Tire Co., Ltd. (SZ: 000589) announced June 25th to increase an investment of RMB120 million for Guizhou Hercules Tire Co., Ltd., thereby increasing its stake in Guizhou Hercules to 95% from 90%.
   With the move, Guizhou Tire intends to advance high performance heavy truck radial tire project in Guizhou Hercules.
    Guizhou Hercules started construction of the 800 000 pcs/a high-performance heavy-truck radial tire project in two phases in 2005, with a total investment of RMB838 million. The fist phase project, spend RMB410 million, was completed in 2008 and has normally operated now. The second phase, under construction, is expected to cost RMB398 million.
    The investment increment for Guizhou Hercules is to finance the second phase project and speed up its construction as well as consolidate Guizhou Tire's leading position in heavy-truck radial tires business.
    In parallel, Guizhou Tire is prepared to expand its plant - Guizhou Qianjin Rubber Tire Tube Company Ltd., increasing its all-steel radial tire capacity to 700 000 pcs/a. The expansion scheme has passed an environmental assessment.