Changchun, Jilin – Linglong plans to build its fifth China tire plant in Changchun, Jilin with €628 million (4.9 billion yuan) investment.
Capacity there will comprise 12 million passenger car tires, 2 million truck and bus tires and 200,000 retread truck and bus tires annually, said the company’s statement on 28 March.
The 600,000-sqm plant will be located at Changchun Automobile Economic & Technological Development Zone, which houses a range of automakers such as FAW-Volkswagen and FAW Jiefang, with total annual capacity for 1.2 million passenger cars and 200,000 trucks.
The plant will break ground within 2020 and come on full stream in 2025. It contains three phases with annual capacity breakdown as below:
Phase One: 1.2 million truck and bus tires
Phase Two: 400,000 truck and bus tires and 6 million passenger car tires
Phase Three: 400,000 truck and bus tires, 6 million passenger car tires and 200,000 retread truck and bus tires
Linglong expects the plant to generate €46 million annual net profit on €569 million revenue when in full operation.
The company also announced on 28 March its long-term plan for 2020-2030, aiming to shape itself into a top five tire maker globally with annual sales of 160 million unit tires or €10.3 billion by 2030, evenly split between the domestic and foreign markets.
It has revamped its “5+3” strategy into “6+6,” intending to set up six China plants and six overseas by the end of the period.
Full details of Linglong’s new strategy in the May/June issue of European Rubber Journal magazine.