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Linglong Tire’s SSE Placement to Raise Funds for Hubei Plant

Chinese tyre manufacturer Shandong Linglong Tire (Linglong) plans to raise up about US$289 million for its ongoing Jingmen project in Hubei province, China, through a public placement on the Shanghai Stock Exchange (SSE). The Jingmen project is the company’s fourth China plant in a ‘5+3’ strategy that plans to build 5 plants in China and 3 overseas – when fully operational, it will have annual capacity for 12 million units passenger car tyres, 2.4 million units truck/bus tyres and 60,000 units off-the-road tyres.

 

At present, Phase One of Linglong’s Jingmen project aims to reach an annual capacity of 8 million units passenger car tyres and 1.2 million units truck/bus tyres. Phase One started construction in July 2018 and is scheduled to reach full capacity in May 2021.

 

Linglong claims the project will bring in some US$28.4 million annual net profit on US$312 million sales, and announced the commissioning of the Hubei plant in January 2020.

 

About Linglong Tire

 

Shandong Linglong Tire Co., Ltd., a Top 20 global tire manufacturer with headquarters in Zhaoyuan City in the Shandong Province of China. It is also among the Top 3 tire manufacturers based in China with global sales of over $1.5 billion in 2016. Linglong employs over 12,000 people worldwide. The company’s "3 + 3" manufacturing strategy includes three production facilities in China and plans for three more plants in other countries. Linglong currently has production facilities in Zhaoyuan City, Dezhou and Liuzhou, China. In 2013, Linglong opened its first international tire production facility in Thailand for high performance radial passenger, light truck and truck-bus tire production. This gave the company annual production capacity of 51 million units. There are plans for future tire production facilities in Europe and the Americas. Linglong is striving to become a Top 10 global tire manufacturer in sales and achieve an annual capacity of 90 million units by 2020.

 

Linglong introduced the first indoor noise and rolling resistance laboratories in China for tire testing. The company has achieved more than 60 national standards in China and obtained over 300 domestic and international patents. Linglong has twice been awarded the "National Prize for Progress in Science and Technology" in China for innovative tire designs. The company has acquired multiple domestic and international certificates including China 3C, European ECE, Arab States GCC, Brazilian INMETRO, and American DOT and SmartWay certification. Linglong is also an OE (Original Equipment) supplier for GM, Ford, Volkswagen,Tata, Tenant-Nissan, Fiat, Hyundai, and more.


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