Shandong Linglong to Invest $200 million in China Proving Ground

Shandong Linglong Tyre Co., Ltd., the third largest tyre manufacturer in China and approximately number 16 in the world, has announced plans to invest $200 million in the construction of a “world class” proving ground in China. Company president Mr Wang Feng told Tyres & Accessories the investment will be spread over four years and will take the form of a three phase plan, beginning with passenger car tyre testing facilities when the proposed proving ground opens in 2012, and expanding to include truck and OTR testing facilities by the time it is completed in 2016. Currently the company is in the process of getting the necessary government approvals for its proposed plot of land, but Mr Wang said the company plans to be in a position to announce the further details at the end of the first half of this year. And the new facility will be a “First class proving ground in terms of size and quality,”he explained. Considering the relatively low cost of land in China, company representatives highlighted the fact that money it plans to invest in the new site will go a long way. Linglong's proposed investment equates to roughly 10 per cent of a year's turnover ($1.79 billion in 2009; over $2 billion expected in 2010) spread over four years.

Linglong’s latest news follows a series of investments in the company’s research and development team. Last year the company employed 50 per cent more technicians than the previous year. In 2010 the plan is to take on 50 per cent more technicians again. Two notable appointments include Dr Xunmao Xia, who has took over as vice director of Linglong’s R&D centre seven months ago. A 25-year tyre industry veteran, Dr Xunmao began his career by completing a PhD in vehicle dynamics at Clemson University in the US. This was followed by tyre testing and development experience at both General Tire and Goodyear, including postings in Texas, Detroit and Akron. South Korean Joo Sangyeol joins Linglong from Hankook Tire and takes on the role of chief technical adviser PCR at the company’s R&D centre

In addition to the proving ground and personnel investments of recent years, Linglong has spent over $60 million on testing equipment. Recent additions include the construction of China’s first purpose-built tyre noise testing lab last year and force/moment machinery and rolling-resistance measurement equipment.

In addition to fighting to improve on low quality expectations of Chinese produced tyres, Linglong’s  recent R&D investments are also designed to prepare the company for the challenges associated with the forthcoming European labelling legislation. Speaking at the Infinity Tyres global dealer conference, which took place 4 – 8 March in Bangkok, Dr Xunmao explained that the company has been distributing REACH compliant PAH oil free tyres since September 2009, several months ahead of the January 2010 deadline. The development of a specialised sound lab no-doubt had the recently introduced European s-mark legislation in mind as well and the development of the company’s new proving ground (despite it opening after the 2012 tyre labelling deadline) will give the company more scope to prepare for future legislation.

Chinese tyremaker to launch run-flat and low rolling resistance tyres this year

However, Linglong president Mr Wang was quick to point out that this was one of many considerations associated with the decision to build the new proving ground. This project is primarily intended to help the company take its own product development to the next level. If everything goes according to the current schedule, the new Linglong facility has a good chance to become the first proving ground of its kind in mainland China. At the moment the only company with plans at a comparable level of development of scope is competitor Giti Tire, which also plans to build a proving ground in a similar timeframe. Whichever company gets there first will be in a particularly good position to offer the use of the proving ground to other companies, with the potential to make the site at least partly self funding. Speaking solely about his own company, Mr Wang said that, in addition to its own testing and hiring the site out to third parties, he hopes Linglong can play a role in developing future Chinese tyre regulations in partnership with the government of the People’s Republic

All the recent emphasis on research and development, combined with the company’s reputation as a fast follower of market trends has resulted in the recent development of some surprisingly advanced technology. One example is that Linglong is currently in the last stages of developing a run-flat tyre which the technicians say can run for 160 kilometres at 80 km/h – almost double the mileage recommended for most existing run-flat products. This tyre is currently at the road testing stage, with the first sizes expected to enter production in the second half of 2010.

In addition, Linglong is in the last stages of developing a low-rolling resistance product for OE partner GM China. Linglong already has OE fitments with GM China in low-end passenger car applications, but the strategy now is to take this to the mid-range and top-end segments.

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• GITI to Construct New Chinese Proving Ground and R&D Centre