Linglong Tire Invests Heavily to Expand Overseas Base

Recently, according to Serbia Business News, Linglong Tire plans to acquire 70 hectares of land locally to expand its production base; the new factory area will absorb 400-800 employees. Against the backdrop of contraction and withdrawal by major auto parts giants in Europe and America, Linglong Tire is going against the trend to acquire assets, not only smoothly taking over the industrial and labor vacuum left by German enterprises but also continuing to deepen its global layout.

Investing $645 million to Build a Green Full Industrial Chain

It is reported that Linglong Tire has signed a 70-hectare factory expansion agreement; the expansion plots are located in the southeastern industrial park of Zrenjanin. Currently, its business plan is under review by the Serbia Development Agency, and Linglong also expects the new project to receive government subsidies for new employment.

Last month, Linglong Group Vice President Sun Songtao revealed that the company plans to invest $645 million to advance the Phase II project of Zrenjanin Factory, focusing on building a "green industrial chain from tire production to recycling". He emphasized that Serbia and Thailand are the two core pillars for Linglong to optimize its production system and expand European and global markets.

Previously, Linglong's Phase I project in Serbia has completed nearly $1 billion in investment, been approved for about 100 hectares of land, and cumulatively obtained over 80 million euros in national support funds. The factory officially started production in 2024, and currently on-site employees have reached 2,500.

Going Against the Trend to Take Over: Absorbing 1,800 Lost Jobs from German Enterprises

Linglong's expansion is no different from a "timely boost" for Zrenjanin. German high-end auto parts manufacturer Dräxlmaier decided to withdraw from Serbia a year ago, which is part of its overall strategy to exit the European market. Despite the Serbian government urging them to stay multiple times, the enterprise still decided to completely withdraw by the end of this year or early next year, affecting a total of 1,800 local employees.

Zrenjanin Mayor Sara Pura stated that Linglong's capacity expansion is significant; along with JUSDA Europe utilizing Dräxlmaier's original facilities as a distribution warehouse, it effectively took over the surplus labor force, avoiding a sharp spike in the local unemployment rate.

Infrastructure Empowerment: Upgrading Transportation Hubs Helps Extend Reach Across Europe

Besides the smooth succession of labor resources, the upgrade of local transportation infrastructure will also safeguard Linglong's expansion. Currently, two locations of the Belgrade-Zrenjanin-Novisad Expressway have started preliminary construction, and the railway passing through the city has also seen renovation and upgrades. These two major projects will significantly improve logistics operation efficiency, providing solid support for Linglong to further reduce logistics costs and efficiently extend its reach to the European market.

Industry insiders point out that from the $1 billion Phase I implementation to the $645 million Phase II building a green closed-loop industrial chain, Linglong's deep cultivation in Serbia not only enjoyed the local policy and location dividends, but also in the current situation where international car companies are restructuring supply chains, relying on acquiring assets at low prices against the trend to solidify progress, it is gradually enhancing its influence in the global high-end tire market.