Linglong Tire plans to invest RMB4 bln in a tire program

Shandong Linglong Tire Co., Ltd. released Dec. 17 an announcement to introduce its cooperation with Jingmen People's Government, Hubei province.

Linglong Group Co., Ltd., the controlling shareholder of Linglong Tire, and Jingmen government signed a strategic cooperation agreement on Dec. 16 in a radial tire production program in Jingmen.

The program includes semi-steel production lines and all-steel radial tire production lines, with an expected investment of some 4 billion yuan, including some 800 million yuan in civil works and 3.2 billion yuan in equipment purchase.

Some of the funds will be prepaid by Jingmeng High-tech Industry Investment Co., Ltd.

The money for civil works should be paid back by Linglong Group within three years from the date when the civil works pass the acceptance inspection; and the money prepaid for equipment purchase should be paid back in exactly three years later.

Jingmen government agrees to offer preferential policies to Linglong Group.

Linglong Tire says the cooperation is of significant importance for it to expand in central China's auto parts market.

In addition, the program helps Linglong Tire lower logistics costs, increase delivery efficiency, and improve customers' satisfaction.