Industry News

Shandong Linglong Tire Co. planning to expand in Thailand

China: The Chairman of Shangdong Linglong Tire Co. Ltd., one of the prominent tire company of China, has revealed that the company is planning to build two more plants outside China. The Chairman- Mr. Wang Feng also revealed that the tire company is following “3+3” strategy, by having 3 manufacturing plants in China and 3 plants located abroad.

The company is already operating one international plant in Chonburi, Thailand, since 2014, and also expanded the capacity of the plant with the production of radial truck/bus tires last year and revealed its plants to further have test track in Thailand. Further, while hosting a delegation of Thai government officials, the Chairman has now revealed the company’s plans to invest in expanded rubber compounding capacity at the same plant. He further stressed on the most advanced process equipment to be used in the production, to ensure quality as well as environmental protection, whereas, he mentioned nothing about scale of those plans and their investment values.

As of now, Mr. Wang did not reveal the locations of second and third plant of the company, which will be considered as a part of the company’s plan to “advance its internationalization gradually”, but Ms. Sibunruang, the minister of Thai Industry revealed to the Thailand’s National Newspaper that, the tire factories would consume a huge amount of natural rubber, which is one the key crop of Thailand.

As per the latest report by TechSci Research- “Thailand Tyre Market Forecast and Opportunities, 2020”, Thailand is one of the leading rubber producer across the world, and accounted for around one-third of the global rubber production in 2014. The country has also emerged as one of the most preferred location for the automotive production, due to availability of cheap labour and geographical advantage of its location in ASEAN region. Major global automotive OEMs such as General Motors, Toyota, Honda, Mitsubishi, Honda, Isuzu, Ford, Nissan, etc., have established their manufacturing plants in Thailand, in order to address increasing domestic as well as global demand for automobiles, which in turn, has been surging demand for automotive tyres in the country.

As per TechSci Research, the strategic decision taken by the China based tire producer will give company the access to all ASEAN markets and will simultaneously help the company to tap the OEM tire demand in Thailand and other neighbouring countries, that too at a lesser cost.

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