Linglong to shift production for U.S. truck tires from Thailand to Serbia

HUBEI, China—Shandong Linglong Tire Co. Ltd. is shifting some supply of radial truck/bus tires for the U.S. market to its new plant in Serbia from Thailand ahead of potential trade barriers being considered by the U.S. government.

In a Nov. 21 "investor exchange event," the Chinese tire maker said it expected a final ruling by the U.S. government on antidumping duties tariffs on TBRs originating from Thailand in May 2024. The U.S. International Trade Commission is expected to issue its preliminary findings in the case in early December.

Linglong said it will use its advantage of "dual bases" overseas to counter such tariffs, particularly shifting production of tires for the U.S. market to its plant in Zrenjanin, Serbia.

The Zrenjanin facility started operation in November last year and, according to Linglong, production there is "still continuing to ramp up".

The group aims to complete a second-phase increase in TBR production "in the first half of next year," towards achieving full capacity of 1.6 million units/year at the Serbian factory. .

"We can adjust the shipment-flow and transfer all-steel orders for the U.S. market to Serbia for production, effectively coping with U.S. trade barriers," Linglong said.

The group went on to note that truck/bus tire capacity in Thailand is stated as 2.2 million units annually, accounting for over 10 percent of its overall capacity.

Anti-dumping duties, will therefore, have "a small overall impact on the company," Linglong stated.

According to Linglong, TBR orders in Thailand match with the 'full capacity' utilization rate, with next year looking "better than this year."

In terms of other production plans in Serbia, Linglong said it is striving to "obtain a trial license as soon as possible for production and sales" of passenger tires.

The project, according to Linglong, targets to achieve 4 million units of annual production capacity in the first phase, and reach 6 million units by year-end 2024.

Car tire production at the Zrenjanin plant, it added, is set to reach the designed production capacity of 12 million units per year in 2025.

Capacity for 20,000 off-road tires at the Serbian plant likewise is set to be completed in 2025, the Chinese group added.

Linglong, the No. 17 tire maker worldwide based on fiscal 2022 sales of $2.46 billion, said it has expanded capacities for car tires at plants in Huebi and Dezhou, China, by 3 million units per year at each site. At the same time, a greenfield tire factory project in Changchun has been put into production, with capacity ramping up, Linglong said.

Group efforts to increase car tire production are now focused on ramping up operations at Changchun as well as the start-up of production in Serbia.

"It is expected that the two plants combined will have more than 6 million new semi-steel production capacity [per year]," Linglong concluded.