The Japanese company Toyo tires will receive 637,455 square meters of state land in Indjija for the construction of a tire factory, worth almost three million euros, according to the decision of the State Aid Control Commission.
The value of the land that will be alienated without compensation was estimated by the Tax Administration at almost 5 euros per square meter, and in order to receive this type of state aid, the company will have to employ 523 workers indefinitely by 2023.
This means that the state has allocated about 5,700 euros of non-monetary assistance per employee to Toyers Tires.
The total investment of investors in tangible and intangible funds for this investment project will be around 364 million euros, of which at least 25 percent of investments must be financed from funds that do not contain any state aid.
In addition to the jobs, the investor undertook to keep the investment on the territory of Indjija for at least five years from the day of the completion of the project.
The Japanese company was founded in 1945 in Osaka, and currently employs about 13,000 workers worldwide. They currently have seven factories for the production of tires and four for the production of car parts.
Tire production accounts for 85% of the company’s total sales, and the range includes tires for passenger vehicles, trucks and buses, among others.
The factory in Indjija is planned to be a center for the production of tires for the European and Russian markets, Nova Ekonomija reports.
