Chinese company Shandong Linglong plans to increase the capital of its Serbian unit Linglong International Europe by US$174.1m (EUR146.6m) to invest in construction of a tyre factory in Zrenjanin, northern Serbia, according to a media report.
SeeNews, a filing with the Shanghai Stock Exchange, said Shandong Linglong would raise the capital of its fully owned Serbian subsidiary through Linglong Netherlands, the direct owner of Linglong International Europe.
Hong Kong Tiancheng Investment & Trading, a fully-owned unit of Shandong Linglong will inject $130.5m into the capital of Linglong Netherlands while Thailand-based unit Linglong International Tire will subscribe a $43.6m capital funding of the Dutch-based company, the Chinese group said.
"The aforementioned capital increase will be used for the construction of the project of Linglong in Serbia," the Chinese company noted.
Linglong Netherlands owns the entire capital of Serbian company Linglong International Europe Zrenjanin, which is in charge of the construction of an EUR800m tyre factory in Zrenjanin, northern Serbia.
Shandong Linglong started construction in April 2019 and expects to complete the first phase of the project by 30 November.