Linglong Tire, the third largest tire manufacturer in China, has unveiled plans to invest $645 million to expand its production capacity in Europe by enhancing its Serbian factory. The investment will significantly increase the factory’s output in the Zrenjanin Free Zone, boosting annual production by 1.1 million high-performance radial tires.
The expansion includes:
- 800,000 tires for buses and trucks
- 150,000 tires for agricultural vehicles
- 50,000 tires for engineering vehicles
- 100,000 retreaded tires
Linglong Tire will directly invest $193 million, with the remaining funds sourced from bank loans. In addition to production upgrades, the company will construct a 24-megawatt solar power plant at the facility to cut carbon emissions. Preliminary work on the expansion is set to conclude by December, with construction commencing in January and the project expected to be operational by December 2030.
The factory expansion is anticipated to yield an average annual net profit of $123 million upon reaching full capacity, with projected annual operating income of $282 million. The investment recovery period is estimated to be just under six years, encompassing the construction phase.
