Linglong to invest USD 645 million in stepping up production in Zrenjanin – Expansion of factory’s capacity to start in January

Linglong Tyre, China’s third-biggest tire supplier, said it will invest USD 645 million to meet growing demand in Europe by increasing the production capacity of its factory in Serbia.

The project will lift the output of high-performance radial tires at the plant in the Zrenjanin Free Zone by 1.1 million units a year, Linglong said. That will include 800,000 tires for buses and trucks, 150,000 for farm vehicles, 50,000 for engineering vehicles, and 100,000 refurbished tires, as reported by the Chinese Yicai Global.

The Zhaoyuan-based company will directly invest USD 193 million, with the rest coming from bank loans. The firm also said it will build a 24-megawatt distributed solar power station at the plant to reduce its carbon emissions.

Preliminary work on the project should be completed by the end of December, according to the construction schedule, Yicai Global reports. Building work will begin in January and the project will become operational in December 2030.

The project will likely bring an average annual net profit of USD 123 million after reaching full capacity, with an expected average operating revenue of USD 282 million, the company said, adding that the time needed to recover the investment is just under six years, including the construction period.

Linglong produced 79.1 million tires last year, and has five factories in China along with another in Thailand, the announcement says.

The first phase of the Serbian plant, which began trial production in the first half of last year, has a planned output of 13.82 million tires of various types a year, Linglong has said. The firm expects it to reach the designed capacity for each product by the end of next June.

Linglong's net profit was USD 195.1 million last year, according to its annual financial report. Operating revenue reached USD 2.8 billion, reports Yicai Global.

Linglong International Europe d.o.o. Zrenjanin

Slobodna zona Zrenjanin

Linglong Tyre

Linglong Serbia

Free Zone Zrenjanin

tire factory Zrenjanin

expansion of tire manufacture in Zrenjanin

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