Linglong unveils €1bn tire plant project in Brazil

Zhaoyuan City, China – Shandong Linglong Tire has unveiled ‘investment intentions’ for a major greenfield tire plant in Brazil to support its global expansion strategy.

In a 25 April stock exchange filing, Linglong said it is partnering with Paraguay-based tire distributor/importer Sunset SA Comercial Industrial Y De Servicios for the JV project.

Located in Ponta Grossa, Parana atate, the Yuan8.7-billion (€1 billion) project – tentatively named Linglong Tire (Brazil) Co. – will be 70%-owned by Linglong and 30%-owned by Sunset.

Spanning an area of 1.26 square kilometres, the proposed facility will have a capacity to produce 14.7 million high-performance radial tires, according to Linglong.

This will include 12 million passenger car tires, 2.4 million truck & bus tires, 200,000 engineering tires, and 100,000 retreaded tires.

The site will also have the capacity to produce 6,000 tonnes of “liquid reclaimed rubber,” Linglong added.

The project is to be completed in three phases, construction is set to start in the third quarter of 2025 and full completion scheduled for 2032.

Linglong also plans to build a 35MW photovoltaic power station at the site, with an average annual power generation of 43 million kWh.

The project is in line with Linglong’s "7+5" strategic global layout, which includes seven domestic factories and five overseas plants.

“Brazil is an important global automotive production country, with… [companies] such as Fiat, General Motors, and Volkswagen having all established factories in the country,” said Linglong.

Furthermore, Chinese car makers such as Chery, JAC, and Lifan have also invested in 18 projects in Brazil, resulting in a significant industrial clustering effect.

Linglong said its proposed facility will supply to the local and regional markets, including Argentina, Paraguay, Uruguay, Venezuela, Bolivia, Chile, Colombia, Mexico, India, Angola, Egypt and some African nations.

It will also further expand supply efficiency to European and American car manufacturers, Linglong added.

Upon completion, under normal operating conditions, Linglong expects the project to generate sales of Yuan 7.7 billion and profit of Yuan 1.2 billion, annually.