Linglong inks framework agreement for $1bn Serbian tire-plant project

Beijing, China – Shandong Linglong Tire Co has signed an investment framework agreement for its Serbian tire plant project with the country’s government, Linglong announced 17 Sept.

The company, however, did not disclose details of the agreement, which was signed by Linglong chairman Wang Feng and Siniša Mali, Serbia's finance minister. The Serbian president Aleksandar Vu?i? also attended the signing.

During the ceremony, the president said “he would fully support Linglong’s Serbian project to complete construction and start operation as soon as possible,” the company reported.

The construction of the Serbian manufacturing base will further develop the company’s European markets, according to Linglong.

“Direct sales from Serbian factory to OEMs and retail distributors in and around Europe will serve customers faster and more effectively and reduce logistics costs,” it added.

Linglong said the Serbian project can also promote the deeper cooperation between Linglong and some European automakers. such as VW and Audi.

The Chinese tire maker announced plans to build a $994-million (€863-million) production plant in the Zrenjanin Free Trade Zone in Serbia in August,

Linglong expects to start construction work on the company’s first European production next April.

The 6-year project will be completed in three phases, and at full capacity can produce 13.62 million high-performance radial tires per year. These will include 12 million units passenger car tires, 1.6 million unit sof truck and bus tires as well as 20,000 off-the-road tires.

Full completion of three phases is set for 2025.