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Company president 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 tire 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 project, but 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 that the money it plans to invest in the new site will go a long way. Linglong’s proposed investment equates to roughly 10% 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 said it employed 50% more technicians than the previous year. In 2010, the plan is to take on 50% more technicians again.
Two notable appointments include Dr. Xunmao Xia, who took over as vice director of Linglong’s research and development center seven months ago. A 25-year tire industry veteran, Dr. Xunmao began his career by completing a PhD in vehicle dynamics at Clemson University in the U.S. This was followed by tire testing and development experience at both General and Goodyear, including postings in Texas, Detroit and Akron.
South Korean Joo Sangyeol joined Linglong from Hankook Tire and took on the role of chief technical adviser PCR at the company’s R&D center. In addition to fighting to improve on low quality expectations of Chinese produced tires, Linglong’s recent R&D investments are also designed to prepare the company for the challenges associated with the forthcoming European labeling legislation. Speaking at the Infinity Tires global dealer conference, which took place Mar. 4-8 in Bangkok, Dr. Xunmao explained that the company has been distributing REACH compliant PAH oil-free tires since September 2009, several months ahead of the January 2010 deadline.
Linglong president Wang was quick to point out that the new proving ground 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, 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 tire regulations in partnership with the Chinese government.
All the emphasis on research and development, some surprisingly advanced technology has emerged.
One example is that Linglong is currently in the last stages of developing a run-flat tire which the technicians say can run for 160 kilometers at 80 km/h almost double the mileage recommended for most existing run-flat products. This tire 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. (Tyres & Accessories)