Serbian President Aleksandar Vucic will attend signing of an agreement on construction of a Shandong Linglong Tyre Co plant in Zrenjanin, northeastern Serbia on Thursday.
The city has allocated 136 hectares of land for the construction and the factory will hire 1,500 workers.
The Chinese company Shandong Linglong has said it plans to invest US$994.4 million in a car tyre factory in the Free Zone in Zrenjanin.
The construction of the plant should begin in April 2019 and it will be carried out in three phases, the last of which will be completed in March 2025, it is stated in the document submitted by Shandong Linglong to the Shanghai Stock Exchange,
The company, as it is said, plans to annually produce more than 13 million radial car tyres of high quality in Zrenjanin.
The decision to invest in Serbia was made due to the low cost of investment, construction, workforce and energy consumed in comparison with other countries in Europe, the Chinese company said.
The project should previously be approved by the Chinese National Development and Reform Commission, as well as the Chinese Ministry of Trade and the State Administration for International Trade.
Shandong Linglong has decided to build the factory in Serbia due to lower investment, construction, labour and energy costs in comparison to other countries in Europe.
Linglong Tyre is an official global partner of FC Juventus in supply of car tyres.
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