A Chinese company has announced investments of almost 1 billion Dollars in the construction of a tire factory outside the Serbian town of Zrenjanin, the Seenews portal reported on Tuesday.
According to documents filed with the Shanghai Stock Exchange, China’s Shandong Linglong Tire Co., Ltd. is planning to build the plant in three stages starting in 2019 and finishing in 2025 at a cost of 994 million Dollars.
Shandong Linglong Tire is planning to produce more than 13 million high-quality radial tires at the plant every year. The company is expecting revenue to reach 603 million Dollars a year with profits of 163 million, according to a statement.
The Chinese company is reported to have been approached by 4 European states, offering conditions for its first European plan. Shandong Linglong has four plants in China and is planning on building two more in other countries, including Serbia.
The company said the decision to invest in Serbia was taken because of low costs of construction, labour and power compared to other European countries. The decision has to win the approval of the Chinese Trade Ministry and other state institutions.