YANTAI, China (Feb. 28, 2017) — Shandong Linglong Tire Co. Ltd. is planning to set up a tire research subsidiary in China and has approved a $120 million expansion of its tire plant in Thailand.
The company also plans to set up rubber recycling and sporting goods businesses in China.
Linglong plans to establish the research and recycling subsidiaries at its manufacturing complex in Yantai, Shandong Province, with registered capital of $31 million and $3.1 million, respectively. Further details were not available.
In Thailand, Linglong disclosed plans to add 800,000 units of annual capacity for radial truck tires, for 2 million units of radial passenger tires and for 400,000 bias-ply tires.
Construction is expected to take 18 months. The new facilities are estimated to general $31 million in annual profit on $188 million in sales, according to a company filing.
Linglong opened the Chonburi, Rayong, Thailand, plant in 2014 and added truck/bus tire capacity a year later. The subsidiary, Linglong International Tire (Thailand), put the capacity for truck tires at 1.2 million units a year, to go with 12 million units of car and light truck tire capacity,
In the sporting goods field, Linglong is setting up a sports culture development company in Beijing, specializing in the manufacturing and sales of sports products, the construction of sports facilities, the operation and promotion of sports events as well as investment in sports clubs. Registered capital will be $8 million.
Linglong also is establishing a smart equipment manufacturing joint venture in Yantai with Shanghai MJ Intelligent System, a smart factory solution provider. Linglong will put in $1.8 million investment and hold a 60-percent stake.
The joint venture aims to "learn from the advanced experience in smart equipment and improve the company's current machinery quality," according to the filing.
Jane Ho is a China-based correspondent for European Rubber Journal, a sister publication of Tire Business.