Michelin to take majority stake in Thai venture

BANGKOK, Thailand (Oct. 30)—Groupe Michelin is taking over majority control of its 13-year-old Siam Michelin Group Ltd. joint venture in Thailand by buying an additional 10-percent stake from its partner there, Siam Cement P.L.C. The purchase, for about $11 million, will raise Michelin´s stake in Siam Michelin to 60 percent. Michelin´s increased ownership may lead to additional investment in the venture´s manufacturing facilities, Siam Cement said in a prepared statement. "The transaction is likely to result in much higher value of the joint-venture operations as Michelin, being a major shareholder, will strengthen its long-term growth prospects with better management flexibility and a worldwide distribution network," Siam Cement said. The company has three main factories—at Laem Chabang in Chonburi, Prapadaeng in Samut Prakan and Nong Khae in Saraburi—as well as a tire mold making plant and a steel cord facility.