London – Linglong Tire and the European Bank for Reconstruction and Development (EBRD) are in negotiations over the construction of a $1-billion tire factory in Serbia.
Linglong, EBRD in talks over Serbia tire plant
According to the Chinese company, Linglong chairman Wang Feng met with a number of EBRD high-ranking officials, including first vice-president Jurgen Rigterink, in London on 16 Oct, where he discussed cooperation in Serbia.
Linglong announced its plans to build a $994.4 million (€863 million) tire factory in Serbia’s Zrenjanin free trade zone, about 50 miles north of Belgrade, in August.
The 6-year project will be completed in three phases, and at full capacity can produce 13.62 million high-performance radial tires per year. These will include 12 million units of passenger car tires, 1.6 million units of truck and bus tires as well as 20,000 off-the-road tires.
During the negotiations in London, the two sides discussed Linglong’s investment plans, risk management and employment opportunities.
According to Linglong, the European bank has found various aspects of the tire project “in line with their investment requirements”.
"We hope that EBRD will be involved in this project to work with us to promote economic development in Serbia and Zrenjanin,” said Wang Feng following the meeting.
Founded in 1991, EBRD is an international financial institution which uses investment as a tool to build market economies.