QINGDAO, China—Qingdao Doublestar Group plans to acquire financially distressed Chinese tire maker Shandong Hengyu Technology Group, a diversified producer of passenger, truck, bus and industrial tires.
Qingdao Doublestar—majority owner of South Korea's Kumho Tire Co. Inc.—is pursuing the deal through its Jilin Jixing Tire Co. Ltd. subsidiary. It said acquiring Hengyu Technology "will help the company's expansion and capacity optimization and gain advantages in competition."
Dongying City, China-based Hengyu Technology—also known as Headway Technology—is undergoing bankruptcy restructuring. As of mid-2018, Hengyu Technology's unaudited market value was listed as $190 million, while the stockholders' equity was pegged at negative $107 million.