Japan's Toyo Tire to open factory in Serbia (updated)
30/07/2019 14:26
(Adds details, quotes)
BELGRADE, July 30 (Reuters) - Japan's Toyo Tire 5105.T
plans to open a production facility in Serbia in a 390 million
euro ($434.54 million) investment deal that would boost Balkan
country's revenues, Serbian president Aleksandar Vucic said on
Tuesday.
To boost revenues and cut debt Serbia has sought foreign
investments, which in 2018 amounted to 3.2 billion euros.
Toyo Tire 5105.T which has 13,000 employees worldwide, will
produce automotive tyres in the town of Indjija, just north of
the capital Belgrade. It is expected to hire a workforce of more
than 500 people, Vucic told a news conference.
"After three years of negotiations ... I received an
official letter from Takashi Shimizo, the president of the
company, (saying) that Toyo Corporation picked Serbia as an
investment destination," Vucic said.
In a statement, Toyo Tire said the Indjija plant would
supply European and Russian markets, which are currently
serviced by plants in Japan and Malaysia.
"As of 2022, the new manufacturing base in Serbia will take
on a key role in this regard," it said.
Construction of the factory, which will cover 60 hectares,
will begin in May 2020. Manufacturing is expected to start in
2022, with a capacity of five million tires annually by summer
2023, Toyo Tire said.
In the first quarter of 2019, Toyo Tire reported net profit
of 5.64 billion yen ($51.95 million) and last month it announced
it ramped up capacity at its United States-based subsidiary.
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($1 = 0.8975 euros)
($1 = 108.5600 yen)
(Reporting by Aleksandar Vasovic; Editing by Louise Heavens and
Kirsten Donovan)
((aleksandar.vasovic@thomsonreuters.com; +381113044930;))