Chinese tyre manufacturer Linglong says it plans to invest US$645 million to expand its production of tyres in Serbia’s northern city of Zrenjanin. The company says the investment is needed to meet rising demand in Europe. This project includes the construction of a photovoltaic power station and the addition of retreading and recycling capabilities. The expansion is scheduled to begin in January 2025, with completion and full operation expected by December 2030.
The supplier aims to increase production at the Zrenjanin plant by 1.1 million/year of various high performance radial tyres, according to a filing with the Shanghai bourse.
Linglong broke ground on its Serbian plant in April 2019. Serbia’s government had said back then it would invest EUR800 million in the construction of the factory, which was planned to create 1,200 jobs and produce 13 million tyres/year.
Linglong said it will invest about US$192.8 million of its own funds in the expansion, with the remainder coming from bank loans.
Production of truck tyres at the Zrenjanin factory started in 2023, followed by the production of passenger car tyres in early 2024.
Along with the plant in Serbia, Linglong has a production facility in Thailand and five production sites in China.