Zhaoyuan, China – Linglong Tire has declared plans to move away from its previously announced ‘6+6’ expansion strategy to increase its focus on domestic growth.
In a 10 June securities statement, Linglong said its board of directors had agreed to change the group's business strategy to a ‘7+5’ model – with seven plants in China and five globally.
Linglong cited ‘unstable and uncertain’ economic situation due to the repeated surge of Covid overseas as well as China’s focus on ‘accelerating the domestic construction’, as key reasons behind the move.
The decision, according to the company, is part of a 10-year ‘medium-to-long-term development plan’ through to 2030.
The re-adjusted mid-term business plan, it said, also 'promotes further deepening of cooperation with OEMs'.
The proposal is subject to approval by shareholders.
In March 2020, Linglong announced a business plan for 2020-2030, aiming to shape itself into a top five tire maker globally.
The target was to achieve annual sales of 160 million unit tires or €10.3 billion by 2030, evenly split between the domestic and foreign markets.
That statement marked a revamp of its “5+3” strategy into a “6+6” plan: intending to set up six China plants and six overseas by the end of the decade.