Chinese tyre maker Shandong Linglong Tire has announced plans to invest US$1.19 billion in a new manufacturing facility in Brazil, making it one of the largest Chinese investments in the South American tyre market this year.
The project, located in Ponta Grossa in Brazil’s southern Paraná state, will be developed through a joint venture with local distributor Sunset SA, with Linglong holding a 70% stake and the Sunset the remaining 30%.
Construction is slated to begin in the third quarter of 2025, with full completion expected by the end of 2032 after three construction phases spanning seven years.
The new plant aims to produce 14.7 million tyres/year, including 12 million passenger car radial tyres, 2.4 million truck and bus radial tyres, and smaller volumes of engineering and retreaded tyres. The facility will also manufacture 6,000 tonnes/year of liquid reclaimed rubber.
Linglong says it plans to finance the project with US$600 million in self-funded capital and US$593 million in bank loans. The facility will include a 35-megawatt solar power plant to support sustainable manufacturing practices.
The project still requires regulatory approvals from Chinese government bodies, including the National Development and Reform Commission and Ministry of Commerce.