Michelin has made a move towards greater backward integration and increased the stake it has in one of its leading suppliers of natural rubber, Societe Internationale De Plantations d’Heveas (SIPH).
The French tire manufacturer increased its stake in the company by 4 per cent from 20 per cent to 24 per cent. The additional shares were acquired through Swiss-based Compagnie Financière Michelin (CFM). Michelin had acquired the 20 per cent share in SIPH in exchange for its rubber plantations in Nigeria. SIPH is one of the biggest producers of natural rubber in West Africa and the Ivory Coast based Groupe Sifca is the major stakeholder in the company with a share of 55 per cent.
Michelin is one of SIPH’s largest customers and through this move is seeking to secure its supply chain. The company specializes in producing and processing natural rubber for industrial use and oversees an area of 40,0000 hectares that is planted with mature rubber trees. The company currently has plantations in many African countries including Liberia, Ghana, Nigeria and Ivory Coast.
Earlier this year, SIPH had announced plans to invest GBP 19 million to modernize its plantations and industrial facilities.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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