In 2014, Zivojin Sekulic was presenting a concept about Serbia as a future hot spot for tyre production in Shandong, in China, one of the world’s biggest tyre production province. By then, nobody was bullish on Serbia and saw the country as the next tyre production hub, but Sekulic applied analysis and research methods to support his prediction.
Sekulic has been with the industry for over a decade, and has been responsible for developing, managing and supporting operations in Europe, Asia, and the USA.
Several reasons could support Sekulic's claims. One of the reasons for that prediction was geopolitical relations between China, USA, EU and Euroasia. To de-risk trade tension, many tyre companies are exploring alternative production locations, and Serbia is emerging to be a viable place to target major markets. Also, Also, 'made in EU' effects are needed for OEM contracts which also help to brand building.
Having those reasons in mind, Sekulic forecast that Chinese tyre companies will come to the Eastern and South-Eastern Europe to setup tyre plants to avoid anti-dumping duties, apply made in EU effect to their brand and to get some OEM contracts as they need to be close enough to automotive plants due to specific logistic delivery contracts.
Five years later, Linglong Tire in 2019 started to build a tyre plant in Serbia with an investment of almost one billion USD. "Serbia is China's first strategic partner in central and eastern Europe and has a favourable environment for development and investment," said the Chinese tyre company. After the completion of the project, the annual output of various high-performance radial tyre will reach 13.62 million units, with yearly revenue of $ 600 million.
In the same year just a few months later, another Asian Tyre producer, Toyo Tire announced that it will setup a plant in Serbia. The Japanese company will invest around 3.91 million euros in the plant, which will produce tyres for passenger vehicles with an annual capacity of five million tyres. Toyo Tire will start construction of the Serbian Plant in May 2020, and manufacturing operations are expected start in January January 2022, with a capacity of five million tyres annually (based on tyres for passenger vehicles) by the summer of 2023.
Cooper Tire Serbia, a subsidiary of Cooper Tire & Rubber is also increasing production capacity at its Kruševac tyre manufacturing plant. With a strategic manufacturing footprint investment of approximately $55 million in equipment upgrades and facility expansion, the project will increase the size of the Kruševac facility to more than 882,000 square feet.
Cooper Tire Serbia will produce new, larger diameter tyres being demanded in Europe and other global markets. Total annual production capacity at the Kruševac plant will increase by approximately one-third after this expansion, which is expected later this year and will establish a footprint which could further double capacity with additional equipment and people.
"We can say that 2019 was an amazing year for the tyre Industry of Serbia. With already four tyre manufacturing plants of Michelin, Copper Tire, Mitas and Trayal, the country will have two more manufacturing plants soon. That is a huge success for Serbia as we all know that even countries with a bigger population and bigger size have lesser number of tyre plants in Europe," says Zivojin Sekulic.
A chat with Zivojin Sekulic:
Why are tyre companies showing increasing interest in Serbia for setting up plants – and generally in eastern Europe?
The reason for setting up tyre plants in Serbia is because of its specific geopolitical status. Serbia is in Europe, but not in the EU. That means particular goods produced in Serbia can be exported with 0% duty to EU, Russia, USA and countries of CEFTA and EFTA agreements and that's the market of almost one billion people. Comparing to anti-dumping duties for tyres produced in China, sounds like a good benefit, right?
Also, another reason is the label of “Made in EU” for tyre brands. The “Made in EU” effects help tyre companies to become recognisable and increase the prices, comparing to prices of tyres produced in China, and that means more significant profit.
Take the example of Hankook and their plant in Hungary. Only a few years after setting up their plant in Hungary they were selling more than 30% of their total annual production in EU and today with OEM contracts, excellent marketing strategy and outstanding R&D teams, they are in the race to become premium brand. So, imagine one day, maybe in five to eight years from today, Linglong can be close to the premium tyre brand and with the right strategy and marketing activities, if they decide to go that way.
One more reason is OEM contracts. Before setting up the plant in Serbia, Linglong signed a deal with VW and Renault, and now tyres produced in the Chinese company's tyre plant in Serbia will be delivered to these two automotive giants.
What benefits/ incentives that Serbia offers?
There are several benefits that country like Serbia is ready to offer to foreign investors. But I would like to highlight the benefits in general, not to go deeper in an analysis of specific incentives as that depends from situation to situation.
For example, the government is offering land where investors can set up a plant free of charge. There are also some tax incentives for more significant investments which are happening in the tyre industry. For instance, Cooper Tire's expansion project is supported by around $8 million in incentives provided by the Serbian government. Some investors can even get incentives per each employee that they will hire (basically like cashback card ). So, a general conclusion is that country like Serbia is really generous to foreign investors, and they should have that in mind.
Which companies are in the process of setting up?
At this moment Linglong is building the tyre plant in the city of Zrenjanin and Toyo announced that they will start building a plant in the city of Indjija very soon.
On the other side, there are major tyre companies - Mitas, Michelin, Cooper Tire, Trayal, which are producing tyres the country.
What's the future of tyre industry in Serbia?
Even I was right six years ago with a prediction that Asian tyre producers will setup tyre plants in Serbia in the near future that doesn't mean I will be right this time. But I genuinely believe that in Serbia there is a place for one more tyre plant. Specifically, I am thinking about a TBR , Agri and OTR tyre plant that can be built in a place where now Trayal's old plant is located which is still working and producing tyres for agriculture.
Going forward, the future of the Serbian tyre industry will move in another direction. After setting up plants, we will see R&D centres and Testing grounds and facilities in the country. I am predicting this because, for R&D, you need to have an excellent workforce and Serbia really has top-notch engineers and amazing developers. Currently, Continental has an R&D centre in the city of Novi Sad where several hundreds of engineers are employed.
In my working experience of 14 years in the tyre industry and 10 years in the IT sector, and having experience from Silicon Valley, I can tell you that engineers, researchers and software developers in Serbia are outstanding and not expensive like in the western EU or Silicon Valley. So, I am pretty sure that future intelligent tyres that will be based on sensors and specific software and machine learning will be designed and produced in some of the R&D centres based in Serbia.
Regarding testing facilities. Well, why should someone go to Spain or to Nordics to test summer or winter tyres if they can do it in Serbia as our climate is changed, so we have very hot summer and extreme winter, the perfect climate for tyre testing.
Q) Please share some information on your Project SMARTY?
My project SMARTY is related to the tyre industry and related to the development of smart tyres and smart trucks.
Using my vast experience from the tyre industry and IT industry, with a team of developers, I am working on the development of specific sensors, hardware and software that will be used in vehicles to optimise the costs and to prevent the accidents with tyres. We want to predict failure before it happens.
Currently, we have some working models and, shortly, we will start with sales of those models. The final goal is to make SMARTY device to become necessary in every vehicle to become smart or autonomous. Sensors for truck and OTR tyres we will unveil soon.
(Zivojin Sekulic: z.sekulic@gaj.rs)
Tiina Frazer Appointed To Nokian Tyres Management Team As SVP Of Brand, Marketing And Communications
- By TT News
- July 18, 2026
Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.
Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.
Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”
Fornnax Secures EU Service Partnership With Industry Veteran Lukas Baur
- By TT News
- July 17, 2026
Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.
Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.
Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.
Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.
This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.
Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."
Apollo Tyres Steps Up Investments In AI, Mfg And Global Expansion To Drive Export-Led Growth
- By Sharad Matade
- July 17, 2026
Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.
The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.
The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.
Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.
To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.
Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.
International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.
Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.
Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.
Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.
CEAT will invest about INR 12.05 billion to expand its manufacturing capacity by roughly 53,000 tyres a day over the next five years, as the RPG Group company prepares for sustained demand growth while reporting a weaker first-quarter profit.
The investment, which will be implemented in phases through the end of FY2031, will be financed through a mix of internal accruals and debt. The expansion comes as CEAT's existing manufacturing facilities are operating at around 95 percent capacity utilisation, with the company stating that production at its Nagpur two-wheeler tyre plant is approaching full utilisation. The additional capacity could be created through greenfield and/or brownfield expansion, depending on internal assessments.
The capital expenditure announcement accompanied CEAT's results for the quarter ended June 30, which reflected resilient revenue growth but pressure on profitability.
Standalone revenue from operations rose 18.2 percent year on year to INR 41.63 billion, from INR 35.21 billion a year earlier. However, net profit declined 27.4 percent to INR 980 million, compared with INR1.35 billion in the corresponding quarter last year. Profit before tax fell to INR 1.32 billion from INR 1.81 billion.
Material costs increased sharply to INR 28.80 billion from INR 22.39 billion a year earlier, reflecting continued input cost pressures, while finance costs and depreciation also rose. Total expenses increased to INR 40.46 billion, compared with INR 33.63 billion in the year-earlier period.
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