South China Rubber and Tire Takes 75% Stake in Guangzhou Bolex
Year:2009 ISSUE:23
COLUMN:M & A, BUSINESS & TRADE
Click:209    DateTime:Aug.19,2009
South China Rubber and Tire Takes 75% Stake in Guangzhou Bolex      

South China Rubber and Tire Group Co., Ltd. has acquired a 75% stake (state-owned) in Guangzhou Bolex Tire Ltd. from the former Guangzhou Rubber Enterprise Group Co., Ltd. in a gratis transfer, announced on July 20th.
   Guangzhou Rubber Enterprises was merged into Guangzhou International Group Co., Ltd. in June 2008.
   Guangzhou Bolex was founded in 1992 as a joint venture between Guangzhou International and Hong Kong Baosheng Development Ltd. (Chinese phonetic alphabets). It has a production capacity of 1.5 million pieces of radial tires per year.
   South China Rubber and Tire, which started operation in 1992, now has manufacturing bases in Panyu, Conghua and Huadu, with annual production capacity of 11 million pieces. It is the largest radial tire maker in southern China and also the largest radial tire exporter in China. The company produced 8.5 million pieces of tires in 2008, and posted sales revenue of RMB2.76 billion in 2008.
   By taking over Guangzhou Bolex, the two companies would complement each other in the industry chain, and ease the situation of small economies scale, competition, and poor management in market order.
   South China Rubber and Tire aims to expand capacity to 30 million pieces of tires per year in next five years, according to its restructuring plan.