Toyo Tire Corporation has started construction of a EUR382m (US$465m) factory in Serbia's Indjija, SeeNews reported, citing the Serbian president's office.

The construction of the factory, which will manufacture tyres for Europe, the Middle East, North America and Africa, will be completed in April 2022, the president and CEO of Toyo Tire, Takashi Shimizu, said during the groundbreaking ceremony, as quoted in a statement by the president's office.

The project is the largest Japanese investment in Serbia, bringing new technology and 560 jobs, Serbia president Aleksandar Vucic said at the groundbreaking ceremony.

"The exports of Toyo Tire will be at the level of EUR240m, and it will be one of the most important and most powerful exporters from the territory of Serbia," Vucic said.

Last month, Serbia's state aid commission approved the allocation of EUR41m ($48.7m) in government financing to Belgrade-based Toyo Tire Serbia, the fully owned subsidiary of Toyo Tire Corporation, for the construction of the factory.

Toyo completed earlier this year the acquisition of a 63 hectare land plot in the northeastern industrial zone of Indjija where it will build the factory with a footprint of 300,000 square metres.

Earlier this month, Toyo Tire named Japanese engineering and construction company Takenaka to build the factory with works to start on 15 December.