Shandong Linglong Tire has confirmed plans to establish a major new tyre production facility in Brazil, following a stock exchange filing dated 25 April. The joint venture project, formed with Paraguay-based Sunset S.A. Comercial Industrial Y De Servicios, aims to support Linglong’s wider international expansion strategy.
The new company, provisionally named Linglong Tire (Brazil) Co., will be located in Ponta Grossa, Paraná state, and represents an estimated total investment of Yuan 8.7 billion (€1 billion).
The planned facility will span 1.26 square kilometres and is designed for an annual production capacity of 14.7 million high-performance radial tyres, divided into:
The site will also feature capacity to produce 6,000 tonnes of liquid reclaimed rubber annually.
Construction is expected to begin in Q3 2025, with phased development leading to full completion by 2032.
Under the agreement, Linglong will hold a 70% controlling stake in the joint venture, with Sunset owning 30%. Both monetary and non-monetary contributions will fund the project, in compliance with Brazilian regulations.
In addition to tyre manufacturing, Linglong plans to integrate a 35MW photovoltaic power station at the site, expected to generate 43 million kWh annually. This move supports both local energy resilience and the company’s environmental goals.
The Brazil plant will be Linglong’s first in South America and forms part of its “7+5” global strategy — seven factories in China and five overseas.
Brazil’s automotive industry, home to established OEMs such as Fiat, General Motors, and Volkswagen, offers a strong platform for tyre supply. Recent investment by Chinese vehicle manufacturers like Chery, JAC, and Lifan has further contributed to a growing automotive cluster.
Linglong intends the new plant to serve not only Brazil but also neighbouring markets, including Argentina, Paraguay, Uruguay, Venezuela, Bolivia, Chile, Colombia, Mexico, as well as selected African and Asian nations.
The new venture builds on a longstanding commercial relationship between Linglong and Sunset. Over the past decade, Sunset has been a major distributor for Linglong in South America, previously agreeing to a $300 million tyre supply contract and the establishment of over 90 Linglong-branded outlets across Brazil and Paraguay.
Linglong’s decision to localise tyre production in Brazil highlights a major trend across the global tyre sector: aligning manufacturing closer to growing automotive markets to reduce logistics complexity, strengthen brand presence, and improve service responsiveness. Sustainability features, such as integrated solar power generation and reclaimed rubber production, also reflect a wider shift towards greener tyre manufacturing practices in new investments.
Tagged with: Linglong Tire, Sunset S.A., tyre manufacturing Brazil, Brazilian tyre market, joint venture tyres, radial tyres, tyre production Latin America, tyre distribution South America
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