Serbia---On August 23, 2018, Shandong Linglong Tire Co., Ltd. signed an investment memorandum with Mr. Goran Knežević, Serbian Minister of Economy, in Serbia. Mr. Vučić, Prime Minister of Serbia, and Mr. Li Manchang, Chinese ambassador in Serbia, attended this signing ceremony. The plant in Serbia will be Linglong’s second overseas manufacturing base, located in the Zrenjanin Free Trade Zone in Serbia. The project involves an investment of US$994.41 million, with expected annual capacity of HP radial tires reaching 13.62 million units.
On August 21, Linglong Tire issued an announcement on its overseas investment. In order to further enhance the company's international competitiveness, promote the company’s 5+3 strategic layout, effectively expand overseas markets, and avoid trade barriers, after extensive research and careful comparison, Linglong Tire has brought forward to build high performance radial tire project with annual capacity reaching 13.62 million units in the free trade area of Zrenjanin, southeast of Serbia, which demonstrates that Linglong’s second overseas manufacturing base will be in Serbia.
Serbia is the first country in Central and Eastern Europe to establish a strategic partnership with China, which possesses an outstanding advantages in investment environment. The project in Serbia will help Linglong to expand its European market, enhance the company's international competitiveness, promote the company’s 5+3 strategic layout, effectively increase its market share and avoid trade barriers.
Meanwhile, there are various global famous OEMs and retail distributors in the nearby of Serbia, therefore, the Serbian manufacturing base could effectively reduce the transportation costs. With the development of Linglong’s OE business with Volkswagen, the time of supply products to Volkswagen’s European plant will be shortened sharply when the Serbian project is completed, which will promoting the construction of Linglong’s overseas OE system and improve the company’s international industrial layout.
The Serbian plant will focus on intelligence and make full of artificial intelligence, mobile sensor, industrial big data and industrial robot to realize the product life-cycle management and flexible automatic production, building a green tire plant with full-field intelligence and all-process automation.