SEOUL, South Korea (Nov. 11, 2011)—Nexen Tire Corp. has notified the Korean Stock Exchange that it is engaged in discussions with Michelin about a possible joint venture project.
Nexen's filing with the stock exchange coincided with Michelin's divesting its 9.98-percent shareholding in fellow Korean tire maker Hankook Tire Co. Ltd.
Nexen issued the filing in response to rumors in the press, but said there is no more information to add at this stage. The company expects to make an announcement in due course.
If the talks yield a business venture, it would be the second go-round for Michelin and Nexen. In 1988 Michelin and Nexen predecessor company Woosung Industrial Co. Ltd. set up a joint manufacturing venture in Korea. That venture lasted four years before the partners dissolved it, citing “profound differences of opinion on the strategic development” of the venture.