Linglong Serbia factory close to car tyre production

Recently, Linglong revealed the latest situation of its Serbian factory. It is reported that for the business needs of the Serbian company, Linglong recently added a credit guarantee of approximately 18 million euros to the subsidiary. As of 30 September 2023, the total assets of the Serbian factory were about 7.94 billion yuan (about £893 million; €1.026 billion).

Linglong launched its Serbia project in March 2019 and started making truck tyres earlier this year. Linglong reports that production of the Serbian factory’s all-steel radial [truck tyre] range has rapidly increased in volume, with sales showing a monthly increase trend too.

When answering how to respond to the US anti-dumping investigation into truck and bus tyres made in Thailand, the manufacturer said that “Serbia’s all-steel radial tyre products will effectively respond to US trade sanctions”.

At the same time, products produced in Serbia are shipped to customers in the eastern United States at lower costs. Therefore, Linglong will enhance its market competitiveness through “flexible use of order allocation”.

It is reported that the Serbian semi-steel radial tyre project is still completing the installation, calibration and configuration of manufacturing equipment. However, Tyres & Accessories is close to official production of passenger car and light truck tyres in Serbia.

In the third quarter, Linglong’s revenue and net profit were 5.29 billion yuan (approximately £590 million; €680 million) and 400 million yuan (about £45 million; €52 million). From January to September, Linglong’s operating income was 14.53 billion yuan (about £1.63 billion; €1.88 billion), and its net profit reached 960 million yuan (about £110 million; €120 million).