YANTAI, China—Linglong Tire plans to build a new manufacturing plant capable of producing 14.6 million tires per year in Hefei, Anhuiprovince in central China.
The $804 million project spanning 8.6 million square feet is slated to break ground by the end of 2021 and is set to reach full capacity by 2027, Linglong said Aug. 27.
The company has set forth a "7+5" business strategy, aiming to complete seven plants in China and five globally by 2030.
The new site will be Linglong's seventh plant in China, following existing and planned ones in Zhaoyuan, Dezhou, Liuzhou, Jingmen, Changchun and Tongchuan.
The factory will be able to produce 12 million units of passenger car tires and 2.6 million units of truck and bus tires each year, the company said. The passenger car tires will include 4 million "self-healing" tires, 4 million"new-energy vehicle" tires and 4 million ultra-high performance radial tires.
TBR tires will include 1 million units of 'self-healing' tires, 1 million units of smart tires and 600,000 units of high performance radial tires.
Linglong plans to build the factory in three phases. Phase one will have a capacity to produce 6 million passenger car tires annually and is set for completion by the end of 2023.
Phase two will add another 6 million passenger car tires and 1 million truck and bus tires per year. It is expected to start operation by the end of 2025.
Phase three will complete the plant's capacity with an additional 1.6 million truck and bus tires per year and will come on stream by the end of 2027.
The project is expected to generate about $98 million annual net profit on $784 million sales when in full operation, Linlong said.