ZHAOYUAN, China—Linglong Tire has unveiled plans for the construction of a new greenfield tire production facility in Tongchuan, in the central province of Shaanxi.
The $943 million project will have the annual capacity to produce 15.2 million units of high-performance radial tires and 500,000 sets of retreaded tires, Linglong said June 10.
The move is part of the company's 2020 global expansion strategy which pursues a "6+6" layout—six plants in China, and six globally.
Linglong expects to start the preliminary procedures for building the plant in the second half of 2021 and to begin construction by April 2022.
The project will be located at the Dongjiahe Circular Economy Industrial Park, Tongchuan City and will be completed in three phases by March 2028.
Once fully operational, the factory will manufacture 12 million sets of semi-steel radial tires and 3 million units of all-steel radial tires per year.
It also will produce 100,000 aircraft tires (including 60,000 retreaded tires), 100,000 specialty tires, 500,000 retreaded car tires and 1 million inner tubes and pads.
According Linglong, Tongchuan City was selected for the location of the plant due to "complete regional infrastructure" and proximity to car makers and auto parts manufacturers.
The new plant will be Linglong's sixth domestic production facility, in addition to the ones in Zhaoyuan, Dezhou, Liuzhou, Jingmen, and a fifth which is being constructed in Changchun City, in northeastern China.
The company also operates an overseas plant in Thailand and is building an $970 million facility in Serbia.