Linglong planning more overseas plants

SHANDONG, China (April 18, 2016) — Shandong Linglong Tire Co. Ltd. is considering building at least two more tire plants outside of China, the company's chairman said recently at a tour of the firm's plant in Shandong.

Linglong Chairman Wang Feng said the Chinese tire maker is following a “3+3” strategy of development, with three plants in China and three internationally.

Linglong opened its first overseas plant in 2014, near Chonburi, Thailand, and last year added radial truck/bus tire capacity at that facility  as well as disclosing plans for a test track in Thailand.

The company now also plans to invest in expanded rubber compounding capacity at that plant, Mr. Wang said while hosting a delegation of Thai government officials, entrepreneurs and journalists at the Shandong plant. Mr. Wang stressed that Linglong would spec the “most advanced process equipment” in order to ensure environmental  protection and first class quality.

He did not elaborate on the scale of those plans nor disclose investment values.

Mr. Wang also did not elaborate on possible locations for Linglong's second and third overseas tire factories, which are considered part of the company's plan to “advance its internationalization gradually.”

Among those touring Linglong's Shandong plant were Atchaka Sibunruang, minister of Thai Industry; Pornchai Tarkulwaranont, vice minister for Thai Industry; Verapong Chaiperm, governor of industrial estate authority of Thailand; and Krittayaporn Dabbhadatta, deputy governor of industrial estate authority of Thailand.

Ms. Sibunruang told Thailand's The Nation newspaper after the meeting that the tire industry is one that can consume a large amount of natural rubber, which is a key crop in Thailand.

Shahrzad Pourriahi of European Rubber Journal, a United Kingdom-based sister publication of Tire Business, contributed to this report.