HANNOVER, Germany — Continental AG said today it has reached an important stage in its development in the booming Chinese tire market. The international automotive parts supplier signed a memorandum of understanding with Qingdao Doublestar Tire Industrial Co., Ltd, Qingdao/China, to found a joint venture in the spring of 2005.
If the two companies proceed with the joint venture, Continental would intend to hold a majority interest in the envisaged “Continental Doublestar Co. Ltd”. Current plans would expand the tire production capacity at the Qingdao location. In addition, the construction of a new plant for passenger and light truck tires is planned.
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