LONDON — Shandong Linglong Tire Co. Ltd. is in negotiations with the European Bank for Reconstruction and Development (EBRD) over potential financing for the $1 billion tire factory Linglong's planning to build in Serbia.
According to the Chinese company, Linglong Chairman Wang Feng met with a number of EBRD high-ranking officials, including first vice-president Jurgen Rigterink, in London on Oct. 16, where he discussed cooperation in Serbia.
Linglong announced plans in August to build a $994.4 million tire factory in Serbia's Zrenjanin free trade zone, about 50 miles north of Belgrade.
The 6-year project will be completed in three phases, and at full capacity will be capable of producing 13.6 million radial tires per year, including 12 million car tires, 1.6 million truck/bus tires and 20,000 off-the-road tires.
During the negotiations in London, the two sides discussed Linglong's investment plans, risk management and employment opportunities.
According to Linglong, the European bank has found various aspects of the tire project "in line with their investment requirements."
"We hope that EBRD will be involved in this project to work with us to promote economic development in Serbia and Zrenjanin," Mr. Wang said following the meeting.
Linglong is represented in the U.S. by Linglong Americas Inc., a subsidiary in Medina, Ohio.