On November 2, Linglong held a performance presentation on the operation of the third quarter of 2022. Linglong chairman Wang Feng, board secretary Sun Songtao and heads of relevant departments attended the performance presentation and interacted with investors on Linglong’s business situation.
Based on stock market reporting for the third quarter of 2022, the top nine Chinese listed tyre companies ranked by revenue are Sailun, Linglong, Triangle, Huayi (the holding company of Double Coin), Guizhou Tyre, Sentury, Aeolus, Jiangsu General, and Doublestar. (The leading Chinese tyre company according to Tyrepress global rankings is ZC Rubber (Hangzhou Zhongce), but it is not listed.) The figures show that Sailun has completed a meteoric rise this year to become the Chinese tyre industry’s stock market leader, with an income of more than 6 billion yuan in the quarter, putting it within reach of the global top 10 tyre manufacturers.
At the end of October, several listed companies, including Linglong, Triangle, Sailun, Aeolus, Jiangsu General, Guizhou Tyre (Advance), Doulestar and Sentury, released their operating results for the third quarter. In the third quarter, Linglong produced 17,015,900 tyres and sold 16,623,600 tyres, with a revenue of about 4.37 billion yuan (about 520 million pounds, 600 million euros) and a net profit of about 110 million yuan (about 13.1 million pounds, 15.22 million euros).
Recently, Linglong Tire signed a cooperation agreement with CCCC First Highway Engineering Group. CCCC First Highway Engineering Group will lead the continuing construction of the Serbian project of Linglong International Europe into the plant’s next phase. The plant produced its first tyre, an Eplus-01 truck and bus radial tyre, on 27 June. It is reported that CCCC First Highway Engineering Group’s main task is to be responsible for the current and subsequent construction projects and to promote the construction progress of Linglong’s European project. The two parties did not disclose the specific cooperation details.
June and July saw a spate of factory investment and opening announcements. First there’s the news that Linglong manufactured its first tyre at its brand-new Serbia tyre production plant at the end of June. Of course, this project has been underway for some time, but the fact that it got going just before the end of the first half of 2022 is noteworthy for two reasons. Firstly, notwithstanding the inhibiting effect of general market headwinds associated with pandemic fall-out and war in Ukraine, the project is basically on-schedule. And secondly, it demonstrates that no enthusiasm for Western and specifically European tyre production has been lost since the nullification of European import tariffs against Chinese-produced truck tyres roughly a month ago.
Linglong Tire recently answered questions from investors via the interactive platform of the Shanghai Stock Exchange. The answers reveal details related to developments at the company’s Serbian factory and its Chinese aircraft tyre production plant.
Linglong Tire has provided further details of its original equipment partnership with MAN Truck & Bus, which it first announced at The Tire Cologne in May. The world’s 12th largest tyre maker will equip the MAN TGL with the Linglong KLS200 steer axle tyres and KLD200 drive axle tyres in sizes 245/70 R17.5 136/134M and 265/70 R17.5 140/138M.
If you design your products in Germany and manufacture them in Serbia, in what sense are they Chinese tyres? A question anyone interested in Linglong’s Hubtrac tyre brand must address. During the recent Tire Cologne exhibition, Tyres & Accessories spoke with Hubtrac UK general manager Dr Edward Xu in order to engage with that particular question and find out more about Linglong’s progress in Europe and beyond.
The first tyres may only just have rolled offer the Serbia factory’s production line, but as part of its ongoing plans to increase market share in the European tyre market, Linglong is currently rolling out its Hubtrac designed-in-Germany, made-in-Serbia truck tyre range. One part of that strategy is supply strategic customers across the country. And those include key fleets.
The first tyre manufactured at Linglong’s Serbian factory – an “all steel radial truck and bus tyre” – rolled off the production line at 6:58am on 27 June 2022 China time (23:58 European time). Whatever the precise time, production on 27 June fulfils Linglong Tire chairman Wang Feng’s commitment that the factory would enter its initial manufacturing phase before the end of the first half of 2022.
Chinese listed tyre companies have successively released their 2021 annual reports in recent weeks. Here, Tyrepress analyses these annual reports’ comparing developments in revenue, operating conditions and overseas factory strategy. And the short story is Linglong remains the largest tyremaker amongst the top 10 listed Chinese tyre companies and that Sailun is the fastest growing.
Linglong Tires has confirmed earlier reports that trial tyre production at the company’s Serbia tyre manufacturing plant will commence by the end of the first half of 2022. In other words, the first tyres will roll off the Chinese tyre manufacturer’s Serbian production line by the end of June. Mass production is the next stop. However, since the first date refers to trial production, Tyres & Accessories understands that it will take till around August for the factory to achieve more deliverable output volumes.
In October 2021, Linglong Tire established a strategic cooperation with China-based renewable resources company Cleantire. The tyre maker declares that it was thus the “first tyre company in the world to achieve a strategic alliance with a waste tyre recycling company,” and although others may contest this title, the partnership is nonetheless significant. Linglong chairman and president, Wang Feng, signed a further comprehensive strategic cooperative agreement with Jiang Young, president of Cleantire, during an online ceremony at the start of April 2022.
When sharing the results of both its main summer 2022 test of 50 tyres and the performance-oriented Auto Bild Sportscars tyre test, esteemed European publication Auto Bild commented that the days of Chinese-made tyres failing these tests due to outdated technology are well and truly behind us. Auto Bild spoke about one product from China in particularly favourable tones.
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Chris Anthony; Tyre Industry Publications Ltd
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Mylene2401; Pixabay