LONDON — Toyo Tire Corp. is planning to start production at its tire plant in Serbia in July, the tire maker reported recently in a statement to European Rubber Journal.
Originally scheduled to start operations in April, the full-scale launch of the $450 million project was delayed somewhat due to "COVID-related influences," the Japanese tire maker said.
Following the start of production, Toyo said it aims to obtain "various certification" before ramping up production to its full capacity of 5 million tires per year. Toyo broke ground on the plant in Indjija City — a municipality of about 47,000 inhabitants northwest of Belgrade in the autonomous province of Vojvodina — in December 2020.
Employment at the plant is expected to be 560 at full capacity. The plant will be Toyo's eighth tire factory worldwide and make Toyo the 15th global tire company with production capacity in Europe.
Toyo made a number of organizational changes recently in its operations in Europe to prepare for the start-up of the Serbian plant.
As part of the move, Toyo established a European holding company to "strengthen governance" and offer subsidiaries "streamlined and improved decision-making processes."
"The enhanced coordination between sales and production companies will lead to greater efficiencies," Toyo told ERJ.
The changes are part of Toyo's ongoing mid-term business plan, which targets capacity expansion to support the U.S. market and provide local production for local consumption.
