(Ecofin Agency) - Michelin increased its interest in the Société Internationale de Plantations d’Hévéas (SIPH). According to Cercle Finance, the firm which until now held 20% of SIPH, since entering its capital in 2006, increased its stake by 3.64%.

By proceeding this way, Michelin reinforces its position within SIPH whose major shareholder is the Ivorian SIFCA which holds about 55% of its capital. While the strategy helps preserve its supply chain (the tire-maker once was IRA’s main client and contributed to 50% of its turnover, but later lost in weight falling to 29.2% of this turnover in 2013, and plunging further as Asian R1 International emerged), Cercle Finance believes it to be no more than a stock market driven move. Truly, Michelin’s decision intervenes amid global rubber price increase, with SIPH’s shares at their lowest, since exploding in 2011, as prices of the commodity boomed.

SIPH which is one of the largest rubber producers in West Africa said it intends to boost its output by 22%, this year.

Aaron Akinocho