HANOVER, Germany (March 3) — Continental A.G. has broken off joint venture discussions with Qingdao Doublestar Tire Industrial Co. Ltd. of Qingdao, China.
Continental CEO Manfred Wennemer said the company believes there are some difficulties with the ownership structure that cannot be bridged, so the two companies are now in discussions about how to end the cooperation.
Conti disclosed in October 2004 it had signed a memorandum of understanding with Qingdao Doublestar to establish a tire-manufacturing joint venture in spring 2005.
The firms said at that time they would expand tire capacity at Qingdao´s existing location and build a separate plant to make passenger and light truck tires.
Qingdao Doublestar Tire — previously known as Qingdao Huaqing Tyre Industrial Co. Ltd. — operates an 8-year-old plant in Qingdao capable of making 1.5 million steel radial truck tires, 2 million bias heavy-duty tires, 2 million agricultural tires and 4 million inner tubes per year.