Linglong Tire plans to increase tire production capacity

17 September 2021 | Source from China Rubber Web

On September 13, Linglong Tire issued a fixed increase plan, which plans to issue no more than 137 million shares in a non-public manner and raise no more than 2.5 billion yuan for the project of annual output of 1.2 million all steel radial tires and 3 million semi steel radial tires in Changchun and the supplement of working capital.

The plan shows that the tire production project will be invested and constructed in Changchun, Jilin Province, with a wholly-owned subsidiary Jilin Linglong Tire Co., Ltd., with a total investment of 2.33 billion yuan. The planned use of raised funds is 1.75 billion yuan and the construction period is 27 months. After calculation, the project's after-tax internal rate of return is 12.09%, and the payback period is estimated to be 8.05 years.

Linglong Tire said that the current supply of the company's products is in short supply, and the capacity problem is gradually becoming prominent. The existing production line can no longer fully meet the market demand. The fundraising project aims to expand production capacity.

As the largest automobile manufacturing base in China, Changchun focuses on complete vehicle manufacturers such as FAW Jiefang, FAW-Volkswagen, and FAW Fengyue. The coordinates of the aforementioned enterprises are all in Changchun Auto Development Zone. The implementation site of this tire production project is also located here, which can quickly meet the supporting needs of the FAW Group and satisfy the markets of North Korea, Japan, South Korea, Russia and Mongolia.

At present, Linglong Tire has 5 production bases in China, Zhaoyuan, Dezhou, Liuzhou, Jingmen, and Changchun, and plans to build the sixth production base in China in Tongchuan City, Shaanxi Province, and the seventh production base in Lujiang, Hefei. It has two production bases in Thailand and Serbia (under construction) overseas, and continues to investigate and build factories around the world, striving to fully complete the "7 + 5" global layout by 2030. It is planned that the annual tire production and sales will exceed 160 million, which is expected to grow into the top five enterprises in the world.

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