Skip to main content

Breaking News

Breaking News
Cooper expects JV plant in Vietnam to be producing truck tires by ‘early 2020'
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Many lessons learned — and some under way — on electric vehicle battery safety
      ETRMA backs revised EU tire labeling text
      Rancho introduces 3-inch suspension system for 2014-20 Ford F-150s
      Don't be fooled by VW's long-running fan
    • Trelleborg launches major restructuring program; tire/wheel business unaffected
      Pirelli to cut costs, contain investments in 2020-22 period
      USTMA raises 2019 shipment forecast slightly on expected aftermarket gains
      Hankook to supply German touring car series' DTM Trophy ‘feeder series'
    • USTMA raises 2019 shipment forecast slightly on expected aftermarket gains
      Kal Tire opens OTR tire retread plant in Mexico
      Aeolus, Onyx discussing TBR joint venture in Sri Lanka
      Cooper expects JV plant in Vietnam to be producing truck tires by ‘early 2020'
    • S.C. targeting illegal tire dumps via 'See it/Report it' campaign
      USTMA calls on all stakeholders to help raise scrap tire recovery rate
      NFIB holding webinar Dec. 4 on new federal overtime rule
      ETRMA backs revised EU tire labeling text
    • Nexen donates meals, tires to Cityzens Giving soccer program
      Trelleborg launches major restructuring program; tire/wheel business unaffected
      Pirelli to cut costs, contain investments in 2020-22 period
      Hankook to supply German touring car series' DTM Trophy ‘feeder series'
    • Hankook to supply German touring car series' DTM Trophy ‘feeder series'
      Americas Rallycross folds after 2 seasons
      Australia's Supercars series renews tire supply deal with Goodyear/Dunlop through 2024
      BKT extends Monster Truck sponsorship deal through 2026
    • Sentury custom Jeep highlights Landsail Rogueblazer tires
      Yokohama adds winter fitment to grader tire line
      Rancho introduces 3-inch suspension system for 2014-20 Ford F-150s
      Nexen targets growing CUV/SUV market segment with Roadian GTX
    • Auto Plus gifts Mustang GT to 'Performance Promotion' winner
      Akebono names AAPEX 'guess the number' winners
      TECH Tire Repairs launches new e-commerce site
      Jack Hone, former publisher of Tire Review, dies at age 81
    • Many lessons learned — and some under way — on electric vehicle battery safety
      Auto Plus gifts Mustang GT to 'Performance Promotion' winner
      Akebono names AAPEX 'guess the number' winners
      TECH Tire Repairs launches new e-commerce site
    • Sentury custom Jeep highlights Landsail Rogueblazer tires
      view gallery
      25 photos
      Photos: A look back at 2019 SEMA, APPEX Shows
      Detore: Assessing the glitz, glamour of SEMA
      AAPEX eyes tire service as part of Repair Shop HQ at 2020 show
    • NFIB holding webinar Dec. 4 on new federal overtime rule
      Tennessee couple named Milex franchisees of the year
      Fight the battles to win the war
      Industry challenges stubbornly persist decades later
    • Sentury custom Jeep highlights Landsail Rogueblazer tires
      USTMA calls on all stakeholders to help raise scrap tire recovery rate
      Apollo enters Saudi Arabian market via tie-in with local distributor
      Nexen expanding outreach to U.S. veterans with Purple Heart pledge
  • Opinion
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
    • DIRECTORY
  • ADVERTISE
  • Classifieds
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 07, 2018 01:00 AM

Linglong speeds up expansion against market headwinds

Jane Ho, China correspondent
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Linglong Tire Co. Ltd.
    Linglong recently laid the ceremonial foundation stone for a fourth tire factory in Jingmen, China.

    YANTAI, China — Coming off a strong fiscal 2017, China's Shandong Linglong Tire Co. Ltd. is projecting a 12-percent rise in revenue and a 10-percent rise in net profit this year and 20-percent yearly growth in production and sales volume the next few years.

    Linglong reported 32-percent growth in revenue last year to $1.97 billion, half of which came from the overseas markets.

    Net profit less non-recurring items rose 6 percent to $145 million, making it one of the few Chinese tire makers that saw an increase in profitability.

    Overall gross margin rate, although down 4 percentage points to 24 percent, is still considerably higher than the average of seven listed Chinese tire makers at 18 percent.

    The company said it sold 49 million tires last year, up 16.4 percent from 2016, making it China's largest passenger car tire maker and second-largest truck and bus tire maker with de facto annual capacity of 48 million passenger tires, 8 million truck and bus tires and 1 million bias tires.

    Linglong estimates its production will reach nearly 58 million units this year.

    With pressure to meet growing demand, Linglong announced in February a "5+3" strategy, envisioning five plants in China and three overseas, compared with its 3+3 strategy from a year earlier.

    At the same time, Linglong revealed plans to build a fourth China site, in Jingmen in Central China, with nearly 14.5 million unit total annual capacity and $803 million investment.

    OE supply 'firsts'

    Linglong claims to be the first Chinese tire maker to become a global original equipment supplier to world-class brands such as Volkswagen, Ford and Nissan. OE sales rose 52 percent last year to $644 million.

    The firm has two plants in its headquarters province of Shandong, one in south China, and one in Thailand operational since 2014.

    Aside from the the bias tire facility and one project in Shandong suspended due to environmental regulations, all of the company's facilities had over 85- percent capacity utilization rate in 2017.

    Site expansions

    The company also is expanding its existing sites to add at least 6 million units of annual capacity by year-end 2018.

    Details of the other overseas projects, including one in the U.S. and one in Europe, have not been disclosed. Smart manufacturing machinery will be installed at all new plants.

    Part of Linglong's confidence comes from its growing research ability. Over the past few years, Linglong has set up research centers in Beijing, Germany and the U.S. to pool new talents, coordinating with its headquarters to work on new product development as well as cutting-edge areas such as dandelion rubber tires, graphene-compound tires and 3D printing.

    Relaunch

    Last year the company relaunched a premium label Atlas, a U.S. passenger car tire brand it had acquired and upgraded, and states its performance is on par with or better than international brands.

    Linglong also invested $4.3 million to set up a subsidiary dedicated to dandelion latex research and also formed strategic alliance with over a number of universities and institutes to spur innovation in this area.

    A further initiative announced last November revealed that Linglong will be heading three relevant projects: snow tires using dandelion rubber, heavy duty tires using gutta-percha and passenger car tires using bio-based itaconate.

    On graphene-compound tires, Linglong has been able to lower the cost for graphene oxide production and developed its rubber latex compound. Application research on formula for heavy duty tread, sedan tread and engineering tread has been conducted, and progress has been reported in improving tire puncture resistance.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox, free of charge.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Autoweek
    • Plastics News
    • Plastics & Rubber World
    • Plastics News Europe
    • Plastics News China
    • Urethanes Technology
    • LSR World
    RESOURCES
    • Advertise
    • Classified
    • Wholesale Tire Directory
    • Privacy Policy
    • Terms of Service
    • Media Guide
    • Ad Rates/Specs
    • Editorial Calendar
    • Clasified Rates
    • List Rental
    • Digital Edition
    • Ad Choices Ad Choices
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • Opinion
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
      • DIRECTORY
    • ADVERTISE
    • Classifieds
    • DIGITAL EDITION