SHANGHAI, China — Shandong Linglong Tire Co. Ltd. is investing $640 million to "enhance competitiveness" and broaden the product mix at its two-year-old tire plant in Zrenjanin, Serbia.
Due for completion by year-end 2030, the project will add capacity for the manufacture of 1.1 million radial tires, Linglong said in a stock exchange filing, including 800,000 truck/bus tires, 50,000 industrial/engineering tires and 150,000 agricultural tires. Construction is set to start in January 2025.
Linglong began passenger tire production at the Zrenjanin plant in mid-2022 and added truck/bus tire capacity later that same year.
In addition, the investment will add capacity for producing 100,000 truck tire retreads and 6,000 metric tons of "liquid recycled rubber" annually, Linglong stated.
Furthermore, the project will involve the installation of a 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 help the Serbian company achieve an average annual operating income of $275 million, 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.
