On May 28, after deliberation by the board of directors of Qingdao Doublestar Co., Ltd., it decided to increase the capital for the established industrial M&A fund by RMB 200 Million Yuan, all of which were used to increase the capital for Guangrao Jixing Tire Co., Ltd., and further used for the latter’s investment in and reorganization of Shandong Hengyu Technology.

Qingdao Doublestar said that in recent years, due to repeated relocation actions, some of the production lines were unable to come into operation normally, which posed a challenge to maintain its market share and meet market orders. While Hengyu Technology’s relatively high-quality production line can make the company smoothly move through the relocation period. It is known that Hengyu Technology can achieve an annual production capacity of 800,000 all-steel tires and 10 million semi-steel tires after being evened up, which is in line with Qingdao Doublestar’s planning requirements for production capacity.