Jingmen, Hubei – Linglong plans to raise up to €265 million (2 billion yuan) through public placement on Shanghai Stock Exchange, including €185 million earmarked for its ongoing project in Jingmen, Hubei province.
The Jingmen project has €414 million total investment and aims to reach an annual capacity of 8 million units passenger car tires and 1.2 million units truck and bus tires, said a Linglong stock exchange filing on 18 February.
This is the Phase One project of Linglong’s Jingmen plant, its fourth China plant out of a ‘5+3’ strategy that plans to build 5 plants in China and 3 overseas.
When fully operational, the Jingmen plant will have annual capacity for 12 million units passenger car tires, 2.4 million units truck and bus tires and 60,000 units off-the-road tires.
Phase One started construction in July 2018 and is scheduled to reach full capacity in May 2021, said the company filing. The project is set to bring in €26 million annual net profit on €286 million sales.
Linglong announced the commissioning of the Hubei plant in January this year.