Yantai, China – Linglong Tyre reported a 21% jump in net profit to €67 million (524 million yuan) during the first half of 2018. Revenue rose by 8% to €923 million.
During the period Linglong produced 27 million tires and sold 26 million, respectively up 10% and 8% from H1 2017.
Dipping rubber price was a major contributor to the profit increase, said the company’s stock exchange filing.
China’s rubber commodity price as of last June dropped 15% year on year to roughly €1,330 per tonne; futures price on Shanghai Futures Exchange was about €1,400 per tonne in June, down by 14% from a year ago.
The company has been ramping up its expansion during the period.
In March, Linglong started a phase three project of its Thailand plant, planning to build annual capacity of 3 million passenger car tire, 600,000 truck and bus tire, 360,000 high-performance two truck tire and 40,000 speciality tire.
In July, the company also broke ground on a new site in Jingmen, Hubei with €739 million investment and planned annual capacity for PCRs of 12 million units; TBRs, 2.4 million units; and OTRs, 60,000 units.