China's leading shoe manufacturer is stepping into a new line of business -- rubber tyres and casting machines, China Daily reported on December 21.

The Qingdao Double Star Shoe Industry Shareholding Co. Ltd said that it is ready to merge with the Qingdao Huanqing Industrial Group Shareholding Co. Ltd, the country's largest casting machine manufacturer and a key tyre producer.

Double Star will issue 23.325 million ordinary shares to all Huanqing shareholders. Using a ration of 1:1, the new shares will replace all their original Huaqing stock shares.

As a result, Double Star will receive all Huanqing's assets.

Double Star President Wang Hai said the merger will allow them to tap and make full use of the two companies' respective advantages for economic expansion.

It will also help to resolve some problems currently facing Huaqing, he said.

The proposed merger will help guarantee the profits of Huanqing 's shareholders, said company sources. (Xinhua)