Linglong investing €585m in Serbian tire factory expansion

Shanghai, China – Shandong Linglong Tire Co. is investing Yuan4.6 billion (€586 million) to “enhance competitiveness” at its European tire manufacturing facility in Zrenjanin, Serbia.

Due for completion by the end of 2030, the construction project will add capacity for the manufacture of 1.1 million radial tires,” Linglong said in a stock exchange filing.

These will include 800,000 units of truck and bus all-steel tires, 50,000 units of engineering tires, and 150,000 units of agricultural tires, according to the 8 Aug announcement.

In addition, the investment will add capacity for the production of 100,000 units of retreaded tires and 6,000 tonnes of “liquid recycled rubber” annually, stated Linglong.

Furthermore, the project will involve the installation of 24mW photovoltaic power generation station that can generate an average of 29.4 million kWh of electricity per year.

Once completed, the investment is expected to achieve an average annual operating income of Yuan2.0 billion, according to Linglong's estimates.

The project "will continue to expand the production scale of the Serbian factory with high-quality and high-standard tire products,” the Chinese group commented.

The investment, it added, will give the facility “significant industrial, technological and product advantages,” towards enhancing competitiveness and increasing market-share.