Toyo Tire will begin the construction of a “smart” production plant in Indjija, Serbia, by May 2020 after an initial investment of US$434.7 million. The Japanese company expects to initiate manufacturing operations in two years of the plant’s completion, with capacity projected to reach five million tyres per year by the summer of 2023.
Serbia has an outstanding resource of highly skilled workforce but comparatively low wages, and successful integration of automotive industries due to ongoing investment by foreign companies. Due in part to Serbia’s blossoming relationship with Japan, Toyo Tire will take on the challenge for a new level of competitive manufacturing with their new project – the company plans to supply differentiated and highly added-value products for luxury passenger vehicles and light trucks within and outside the European market.The first phase of the project will have 539 employees with above-average salaries.
In addition, Toyo Tire will establish a US$176 million Serbian subsidiary in September 2019, based in Belgrade, to oversee the manufacture and regional sales of radial tyres for passenger vehicles and light trucks.
Serbian President, Aleksandar Vucic, said “Toyo Tire is currently supplying tyres for the European and Russian market from factories in Japan and Malaysia. As of 2022, the new manufacturing base in Serbia will take on a key role in this regard.”
While Serbia was chosen over many countries in central, eastern and southern Europe as an investment destination, the Toyo Corporation has further ideas on how to expand their business in the Republic.