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Linglong Tyre inks US$994m Serbia plant deal

By Simon Warburton | 7 September 2018

Linglong Tyre has signed an investment memorandum with Serbian Minister of Economy, Goran KneĹževic, for a US$994m plant in the Zrenjanin Free Trade Zone.

The factory in Serbia will be Linglong's second overseas manufacturing base and will have an expected annual capacity of 13.62m HP radial tyres.

"In order to further enhance the company's international competitiveness, effectively expand overseas markets and avoid trade barriers, after extensive research and careful comparison, Linglong Tyre has brought forward [plans] to build high performance radial tire [s]," said a Linglong statement.

"Serbia is the first country in Central and Eastern Europe to establish a partnership with China, which possesses outstanding advantages in [an] investment environment. The project in Serbia will help Linglong to expand its European marke [and] enhance the company's international competitiveness.

"With the development of Linglong's OE business with Volkswagen, the time of supply to Volkswagen's European plant will be shortened sharply when the Serbian project is completed, which will promote the construction of Linglong's overseas OE system and improve the company's international industrial layout."