Update: Mitas to invest in Serbian tire plant
ERJ staff report (PR)
Ruma, Serbia – Mitas is to expand and modernise its tire factory in Ruma under an investment plan announced 1 July by the company. The project, which is due to be completed in mid-2016, will raise capacity there from 16,000 to 35,000 tonnes of tires a year.
The upgrades, said Mitas, will initially involve the construction of a new logistics centre to help meet rising demand from markets in southern and eastern Europe, and the Middle East.
Mitas also plans to upgrade production capacities for radial agricultural and forestry tires at the Ruma plant, which currently produces both bias and radial agricultural tires.
“Building a new logistic centre will help us stage a further expansion of the Ruma factory, which plays a key role in supplying the new, fast-growing markets for radial agricultural and forestry tires," said Jaroslav Cechura, Mitas’ CEO.
The project is still in preparation stage but the investment will be between Euro25 and Euro35 million, according to Cechura.
Both logistic centre and production building will be doubled in size, he added. The total area of the logistic warehouse will then reach 10,000m2 and the production building expand to about 23,000m2.
The Ruma factory upgrade follows on from the company's investments in Otrokovice, Czech Republic and Charles City in the US.
"Building a plant in North America proved a good decision as our main competitors in the agricultural tires segment are now following Mitas’ example,” the CEO remarked.