Chinese tyre manufacturer Linglong has said it plans to invest US$645m 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.

The supplier aims to increase annual production at the Zrenjanin plant by 1.1m sets 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 said back then it would invest 800 million euro in the construction of the factory, which was planned to create 1,200 jobs and produce 13 million tyres per year.

Linglong said it will invest about $192.8 million of its own funds in the expansion, with the remainder coming from bank loans.

The construction is expected to start in January 2025. The project is planned to be completed by the end of December 2030.

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.