“Granting state aid in the amount of 41 million euro to the Japanese company Toyo Tires Serbia is in accordance with the relevant regulation,” said the State Aid Control Commission.
According to the document published on the Commission’s website, funds and incentives for Toyo’s investment in Indjija will be allocated through the Ministry of Economy, and the Government of Serbia has given its consent.
Incentive funds amounting to 41 million euro are allocated to support the construction and equipping of the tire factory in Indjija, where at least 523 new workers will be employed.
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Toyo Tires had previously received a grant worth three million euro through the allocation of 637,455 square metres of state land.
The company’s total investment will be 382.7 million euro and at least a quarter of the investment will have to be financed with funds other than state aid.
Toyo undertakes not to reduce the number of permanent employees below 526 for a period of five years from the date of completion of the investment.
The company was founded in 1945 and is engaged in tire manufacturing in seven factories and four auto parts factories, employing 12,800 workers worldwide.
Toyo, Nitio and Silverstone tires represents 85% of the total sales of Toyo and the factory in Serbia will produce five million tires per year for the European and Russian markets.
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