Linglong shifting some TBR production from Thailand to Serbia

Hubei, China - Shandong Linglong Tire Co. is shifting some supply of all-steel truck & bus radial (TBR) tires for the US market from Thailand to Serbia, in order to counter potential trade barriers.

In a 21 Nov 'investor exchange event', the Chinese tire maker said it expected a final ruling by the US government on antidumping duties tariffs on TBRs originating from Thailand in May 2024.

Linglong said it will use its advantage of ‘dual-bases’ overseas to counter such tariffs, particularly shifting production of tires for the US 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 unit.

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

The group went on to note that its annual TBR production capacity in Thailand stood at 2.2 million, accounting for over 10% of its overall capacity.

Anti-dumping duties, will therefore, have “a small overall impact on the company,” stated Longlong.

According to Linglong, TBR orders in Thailand match with the ‘full capacity’ utilisation rate, with next year looking “better than this year”.

In terms of other production plans in Serbia, Linglong said its passenger car semi-steel tire project “strives to obtain a trial license as soon as possible for production and sales.”

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 the end of next year.

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.

A 20,000 off-road tires project in Serbia is likewise set to be completed in 2025, the Chinese group added.

Linglong added that its passenger car tire manufacturing sites in Huebi and Dezhou had expanded their production capacities by 3 million units per year each.

A greenfield tire project in Changchun has also been put into production, capacity is currently ramping up, Linglong said.

Group efforts to increase car tire production are now focussed 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],” concluded Linglong.