Yantai, China – Linglong posted €1.4 billion (10.5 billion yuan) revenue in 2016, up 20% from 2015 according to its annual report. Net profit rose by 49% to €135 million.
It’s worth noting that the company’s 2015 revenue showed a 15% decrease year-on-year, against a backdrop of China’s slowed economy and market headwinds.
Moving up to higher-end original equipment supply has helped the company’s performance, according to the report. Last August it became a global supplier of Volkswagen, the first one among Chinese tire makers.
With overseas markets accounting for 54% of Linglong’s sales in 2016, the company is mulling two overseas sites, besides the Thai plant, in Europe and the US. The location of the first one will be determined within the year.
“Rising land costs and declining demographic dividend is making increasing China’s tire makers expand overseas, avoiding the impact of global trade protectionism,” said the report.
In 2016, Linglong produced 43 million unit tires and sold 42 million, with 2017 production pegged at 48 million units. The company is aiming for a 10% rise in revenue and 4% rise in net profit in 2017.