August 24, 2018
Linglong to build mega tyre plant in Serbia
China’s third largest tyre manufacturer, Shandong Linglong Tire Co is planning to build a major production tyre plant ( 4.2 million-sq.-ft.) costing over €860 million in the Zrenjanin Free Trade Zone in Northern Serbia.
Linglong has announced that construction work on their first European production site will start next April.
The production of the factory will be sold mainly to large European car manufacturers, Mr. Wang Feng said. The plan is for the project will be completed in three phases over six years. It expects that at full capacity, it will produce over 13.5 million high-performance radial tyres per year. These will include 12 million passenger car tyres, 1.6 million truck and bus tyres, as well as a reported 20,000 OTR tyres.
Shandong Linglong has decided to build the factory in Serbia because of low investment, construction, labour and energy costs compared to other countries in Europe, the Chinese company said.
Shandong Linglong Tire Co has annual sales of close to €2 billion. The Serbian plant will be Linglong’s second overseas plant combined with their existing four Chinese plants. Their other overseas factory opened in Thailand in 2014.
Linglong will be joining the following three manufacturers wiyj a factory in Serbia – Cooper Tire & Rubber Co; Group Michelin; and Trelleborg Wheel Systems.