ZHAOYUAN CITY, China — Shandong Linglong Tire Co. Ltd. plans to raise about $285 million through a public placement on the Shanghai Stock Exchange, the proceeds of which will go toward various expansion projects.
Linglong said it would earmark about $200 million of the new capital for the tire plant it's building in Jingmen, Hubei Province — its fourth factory in China.
Linglong has budgeted about $450 million for the plant, which is expected to reach an annual capacity of 8 million passenger tires and 1.2 million truck and bus tires, according to a Linglong stock exchange filing.
When fully operational, the Jingmen plant — Linglong's fourth China — will have annual capacity for 12 million passenger tires, 2.4 million truck/bus tires and 60,000 off-the-road tires.
Construction on the plant's first phase began in July 2018 and is slated for completion in May 2021, the company's filing read.
The project is expected to bring in about $28 million annual net profit on sales of about $311 million.