Linglong announced plans to invest USD 700 million in the new plant which would be able to produce 12 million passenger car tyres, two million truck and bus radial tyres as well as 200 000 truck and bus retreads at full capacity. The plant will cover an area of 6.5 million square feet and is expected to break ground this year and opened in phases up till 2025.
The company is currently the 17th largest tyre manufacturer in the world, based on revenue of USD 2.32 billion in 2018.According to its 2020-30 strategicplans, it expects sales to grow to 160 million units, or USD 11.5 billion, thus propelling it to join the ranks of the top five tyre manufacturers in the world. By 2025, the company expects its sales to be split 50/50 between domestic and overseas markets.
The company has revised its original growth strategy of “5 domestic plants + 3 overseas plants” to “6+6″—six plants in China and six internationally by 2030. The Changchun Automobile Economic & Technological Development Zone in which Linglong’s new plant will be located is home to several leading automakers such as FAW-Volkswagen and FAW Jiefang.
The plant is scheduled to open in phases:
Phase One: 1.2 million truck and bus tyres
Phase Two: 400,000 truck and bus tyres and 6 million passenger car tyres
Phase Three: 400,000 truck and bus tyres, 6 million passenger car tyres and 200,000 retread truck and bus tyres
