Chinese tyre manufacturer Shandong Linglong Tire (Linglong) plans to raise up about US$289 million for its ongoing Jingmen project in Hubei province, China, through a public placement on the Shanghai Stock Exchange (SSE). The Jingmen project is the company’s fourth China plant in a ‘5+3’ strategy that plans to build 5 plants in China and 3 overseas – when fully operational, it will have annual capacity for 12 million units passenger car tyres, 2.4 million units truck/bus tyres and 60,000 units off-the-road tyres.
At present, Phase One of Linglong’s Jingmen project aims to reach an annual capacity of 8 million units passenger car tyres and 1.2 million units truck/bus tyres. Phase One started construction in July 2018 and is scheduled to reach full capacity in May 2021.
Linglong claims the project will bring in some US$28.4 million annual net profit on US$312 million sales, and announced the commissioning of the Hubei plant in January 2020.