On February 26, Shandong Linglong Tire Co., Ltd. held a Board Meeting, at which it made a major adjustment to the Company’s development strategy, reviewed and approved five proposals, including adding investment in the construction of Linglong Factory in Liuzhou, Guangxi Province and the development plan of the new factory in Jingmen, Hubei Province.

Years ago, Linglong Tire set up development strategies of “going global while gaining a foothold at home” and “3+3” (i.e. having three production bases at home and three ones abroad respectively). Given that it is hard for Linglong Tire to meet the demand of the market with its capacity at present, the “3+3” strategy is not capable of meeting the Company’s demand for development. Therefore, it decides to implement “5+3” development strategy: Set up another two production bases at home apart from the three ones in Zhaoyuan, Dezhou and Liuzhou based on market condition, one of which is planned to be built in Jingmen, Hubei Province; set up two production bases overseas in Europe and the U.S. apart from the one in Thailand, so as to optimize the layout of manufacturing bases and raise the market shares of Linglong Tire.

It is learned that Linglong Tire signed a Strategic Cooperation Agreement at the end of 2017 with the People’s Government of Jingmen Municipality, Hubei Province on Linglong’s new radial tire project in the Chemical Engineering Circular Industry Park in Jingmen. Linglong will invest RMB 5.79 Billion Yuan in building the project of annually producing 14.46 million units of high-performance tires and supporting projects in Jingmen City, covering an area of 1,506.7 mu and expected to commence from this May for 36 months. The project will be built by the standard of intelligent production lines, with an annual capacity of producing 12 million sets of semi-steel radial tires, 2.4 million sets of all-steel radial tires, 60,000 sets of engineering tires, 1.5 million sets of supporting rim bands of inner tubes and 3,000 tons of supporting plastic fiber fabric.