China Wheel strikes co-operation agreement with Michelin

China Wheel, an alloy wheel manufacturer based in the Pan Bohai region of China has released details that one of its subsidiary has signed an agreement of strategic co-operation with Michelin (China) Investment Co. Ltd. Under this agreement, the named subsidiary, Baoding Lizhong Wheel Manufacturing Co. Ltd. will start to supply wheel products to the 300 TyrePlus that is run by Michelin across the 30 provinces and autonomous regions of China. Through this agreement, China Wheel will join other premium car parts suppliers and manufacturers such as BBS, Johnson Controls, Shell and Hunter who has also signed similar agreements with Michelin.

With a wide variety of in-house designed rims and possessing several trademarks, China Wheel will be able to reach out to a larger pool of end-users. The share price of China Wheel was last done at S$0.37 which is favorably compared against its IPO price of S$0.36. This news will most probably increase the contribution by its retail segment which only consisted 12.7% of the company's total revenue.