PARIS—Michelin has increased its capital share-holding in natural rubber supplier Societe Internationale De Plantations d'Heveas to around 24 percent, from 20 percent previously, SIPH announced July 19.
According to an announcement by SIPH, the shares-purchase was through Swiss-based Compagnie Financiere Michelin. Groupe Sifca of the Ivory Coast is the majority (55 percent) shareholder.
Michelin is one of the largest customers of SIPH, which produces and processes natural rubber for industrial use, managing over 40,0000 hectares of mature rubber trees.
The rubber company's current production capacity is 250 kilotons spread over Cote d'Ivoire, Ghana, Nigeria and Liberia.
SIPH recently announced that it is investing around $21 million in its plantation and industrial capacities.
Some analysts have suggested the share-purchase signals a belief at Michelin that NR prices are now recovering from their five-year slump.