Yantai, China – Linglong Tyre has opened fully-owned new subsidiaries in Luxembourg City, Luxumbourg and Mexico City, Mexico, according to its announcement on June 30.
The two subsidiaries, named Linglong Luxembourg and Elite Faith Mexico, will engage in the import and export of tire and tire raw materials.
The subsidiaries are set up “as per Volkswagen’s request to build up Linglong’s overseas sales network to speed up the two companies’ cooperation,” said the statement.
Last October Linglong became a global supplier of Volkswagen, the first Chinese tire maker to secure such a position.
In fiscal 2016 Linglong reported a 20% rise in revenue to €1.4 billion (10.5 billion yuan), nearly 54% of which came from overseas markets. The company’s net profit during the year jumped 49% to €131 million.