SHANGHAI, China—A senior executive at China's Double Coin Holdings Ltd. has been removed from office because of what the company terms a serious personal disciplinary violation.
Xian Fan, Double Coin's director and chairman of the board, is suspected of being involved in serious breaching of policies and is under investigation. The outcome of the investigation will not impact the company, according to an official statement issued Aug. 6 on the firm's Web site.
The statement does not explain what policies Fan is suspected of breaching.
Double Coin declined to comment further on the situation.
The Shanghai-based tire maker already has brought in at least one executive to take over Fan's roles.
Double Coin is the parent company of Monrovia, Calif.-based China Manufacturers Alliance L.L.C., which issued a statement “to inform our strategic partners of changes in executive personnel” in early August.
CMA said Huayi Group, holding company of Double Coin, elected Liu Xunfeng as the new chairman of that firm's board to replace Fan, “who had been in this capacity for the last eight years.”
The company said Liu previously was president of Huayi Group and served on its board.
“As has been the case for some time, Yue Chunchen, general manager, continues to manage daily business operations of (Double Coin) and its tire subsidiaries,” CMA's statement said.
The company said no changes in business strategy or policy for either Double Coin or China Manufacturers Alliance will take place.
While Double Coin is engaged principally in the manufacture and sale of tires, the company also deals in soap, batteries and printing ink. In 2007 about 92 percent of the firm's revenue was from tires.
In a February 2007 interview, Fan outlined a broad range of plans the company had to reach its goal of creating the world's largest radial truck and bus plant at its newest tire factory in Rugao, China. Fan joined Shanghai Tyre & Rubber Co. Ltd. in 2000 from outside the tire industry after working in the printing, battery and light product industries.
In 2007, Shanghai Tyre changed its name to Double Coin Holdings Ltd.
Fan holds a doctorate in economics from Fundan University in China, has an MBA in marketing and earned an undergraduate degree in mechanical engineering. At the time of the interview, he was vice president of the China Rubber Industry Association and chairman of its tire branch.
When he started at Shanghai Tyre, which is majority owned by the Chinese government, the company was nearly bankrupt. He said he began restructuring the operation, cutting payroll and installing new machinery.
Reflecting on a book he authored, “Thirty Years in Chinese Enterprise Management,” Fan said he believed that for a company to be successful, it must meet the requirements of the market and manage costs in order to obtain competitive pricing.
“If you want to survive, you need to change,” he said.