Linglong announces plan for seventh China plant

Yantai, China – Linglong Tire is to build a new manufacturing plant with the capacity to produce 14.6 million units of tire per year in Hefei, Anhuiprovince in central China.

The €686 million (5.2 billion yuan) project spanning 800,000 sqm is slated to break ground by the end of 2021 and is set to reach full capacity by 2027, said an announcement by Linglong on 27 August.

The company has set forth a ‘7+5’ business strategy, aiming to complete seven plants in China and five globally by 2030.

The new site will be Linglong’s seventhth China plant following existing and planned ones in Zhaoyuan, Dezhou, Liuzhou, Jingmen, Changchun and Tongchuan.

The factory will be able to produce 12 million units of passenger car tires and 2.6 million units of truck and bus tires each year, said the announcement.

The passenger car tires will include 4 million units of 'self-healing' tires, 4 million units of 'new-energy vehicle' tires and 4 million units of ultra-high performance radial tires.

TBR tires will include 1 million units of 'self-healing' tires, 1 million units of smart tires and 600,000 units of high performance radial tires.

Linglong plans to build the factory in three phases. Phase one will have a capacity to produce 6 million units of passenger car tires annually and is set for completion by the end of 2023. 

Phase two will add another 6 million units of passenger car tires and 1 million units of truck and bus tires per year and will start operation by the end of 2025.

Phase three will complete the plant's capacity with an additional 1.6 million units of truck and bus tires per year and will come on stream by the end of 2027.

The project is expected to generate €83 million annual net profit on €662 million sales when in full operation, said the announcement.