Linglong signs $300 million South American tyre distribution deal with Sunset
Shandong Linglong Tire has signed a tyre distribution cooperation agreement with distributor Sunset to expand its market share in Brazil and Paraguay.
Several online news sources report that, as part of the deal, Sunset, based in Ciudad del Este, Paraguay, will buy more than US$300 million in tyres from Linglong between 2019 to 2021. The goal is for the two parties to work together to help Linglong achieve “an over 10 per cent market share of Brazil’s Chinese tyre imports market as well as a 10 per cent market share in Paraguay”.
Sunset Tires has also reportedly also agreed to open at least 90 outlets for Shandong Linglong Tire in Brazil and Paraguay over the next three years, 60 of them are expected to carry the Linglong brand. In order to achieve the tyre retail expansion goal, the two firms have reportedly agreed to share the cost of opening the new stores in the South American markets.
Linglong has cooperated with Sunset for more than a decade. Sunset has annual sales revenue of $300 million with leading market share in both Paraguay and Brazil.