Linglong EV OE reaches more than 6 million in 2022

In 2022, Linglong Tire’s revenue was 17 billion yuan (approximately £1.94 billion; €2.24 billion). Within that, Linglong achieved a revenue of 16.73 billion yuan (about £1.91 billion; €2.2 billion) specifically from tyres. Linglong balanced its domestic and overseas businesses but the revenue brought in by domestic trade was slightly higher. The company’s tyre sales in China reached 8.55 billion yuan, and its export and overseas sales reached 8.18 billion yuan.

Linglong is promoting the “7+5” strategy. In China, the tyre manufacturer has five production bases in Zhaoyuan, Dezhou, Liuzhou, Jingmen, and Changchun. The Shaanxi and Anhui factories are in the early stages of planning. Linglong said that the seven domestic production bases will comprise North China, South China, Central China, Southwest China, Northwest China, Northeast China and East China. At the same time, Linglong has established two production bases in Thailand and Serbia and continues investigating and building factories worldwide.

7+5, OE strategy and electric vehicles

The implementation of the “7+5” strategy is conducive to Linglong’s provision of OE services for automakers. It is reported that the tire manufacturer has provided OE services for more than 200 production bases of more than 60 automobile companies. In 2022, the company’s OE volume exceeded 22 million units. It is worth noting that the tyre maker is developing rapidly in new energy vehicles. In 2022, Linglong provided more than 6 million OE tyres for new energy vehicles.

With that in mind, let’s analyse the operation of Linglong’s production bases. Linglong Zhaoyuan factory can produce 30 million semi-steel radial tyres, 5.85 million all-steel radial tyres, and 250,000 OTR tyres annually. In 2022, the capacity utilisation rates of all-steel radial and OTR tyres were not high, only 56 per cent and 65 per cent.

The Dezhou plant can now produce 7 million semi-steel radial tyres and 2.2 million all-steel radial tyres. The designed annual production capacity of all-steel radial tyres in the Dezhou plant is 3.2 million units, which is still under expansion. Linglong said the expanded production capacity is scheduled to be completed in 2023.

The Liuzhou plant can produce 60,000 OTR tyres, 10 million semi-steel radial tyres, and 2 million semi-steel radial tyres. In 2022, the capacity utilisation rate of OTR tyres at the Liuzhou plant reached 103 per cent. In contrast, the capacity utilisation rate of all-steel radial tyres is low, only 31 per cent.

By the end of 2022, the production capacity of the Jingmen plant was 7 million semi-steel radial tyres and 1.8 million all-steel radial tyres. Linglong said the Jingmen plant increased its production capacity by 1 million semi-steel radial tyres and 300,000 all-steel radial tyres in 2022. In 2023, the Jingmen factory’s semi-steel radial tyre production line is still under expansion.

The Changchun factory can produce 1 million all-steel radial tyres. The production capacity of 1 million tyres is the new production capacity for 2022. The production base’s semi-steel radial tyre production line will complete in 2023.

The Thailand factory can produce 15 million semi-steel radial tyres and 2.2 million all-steel radial tyres.

In addition, Linglong explained the production capacity of the Serbian factory as follows: semi-steel radial tyres will be trial-produced in 2023; all-steel radial tyres will be put into mass production in 2023.