SERBIA: NEW HOT SPOT

SERBIA: NEW HOT SPOT
Zivojin Sekulic

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.

Linglong Tire Project Launch Ceremony

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.

Cooper Tire expanding its Serbian Pla

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?

Sensor for PCR and 4x4 Tyres

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)

Nokian Tyres Celebrates 40th Anniversary Of Ivalo Test Center

Nokian Tyres Celebrates 40th Anniversary Of Ivalo Test Center

Nokian Tyres is commemorating two significant milestones this year: the 90th anniversary of its first Hakkapeliitta winter tyre and the 40th anniversary of its renowned Ivalo Test Center. Located in Finnish Lapland, this facility, famously known as ‘White Hell’, stands as the world’s largest and most versatile winter testing environment. Since its establishment in 1986, it has been the central hub for the company’s mission to achieve global leadership in winter driving safety. What began as a remote outpost has evolved into a sophisticated, thriving epicentre for tyre development and innovation.

Operational for roughly 180 days each year from November to April, the centre capitalises on the extreme Arctic conditions to rigorously test products. Covering more than 700 hectares and situated about 235 kilometres north of the Arctic Circle, the site features a vast network exceeding 40 kilometres of specialised tracks. This includes a 700-metre-long indoor ice hall, frozen lakes and varied road surfaces designed to simulate real-world challenges. Engineers utilise a circular track for assessing lateral grip, snow-covered routes for handling and a steep hill for testing acceleration and longitudinal traction. These diverse courses allow for a comprehensive evaluation of every aspect of tyre performance under the most severe circumstances.

Annually, the company tests approximately 5,000 passenger and heavy tyres at the Ivalo facility. While it is primarily known for developing winter tyres sold across all of Nokian’s markets, its role is broader. The extreme cold conditions are also essential for testing all-season, all-weather and all-terrain tyres intended for Central Europe and North America. These cold-weather evaluations are complemented by wet and dry surface testing conducted at the company’s Hakka Ring facility in Spain and at its location in Nokia, Finland. In recent years, a significant focus of the expert work at Ivalo has been on preparing products to perform reliably in increasingly variable and changing winter weather patterns.

This intensive testing is fundamental to the development of new technologies that enhance driver safety and underpin the company’s innovative leadership. The expertise gained at Ivalo is a direct extension of Nokian Tyres’ heritage, which began with the invention of the winter tyre in 1934. This legacy was solidified two years later with the introduction of the first Hakkapeliitta tyre, a product line celebrating its 90th anniversary this year. The current generation of winter passenger tyres, including studded options like the Hakkapeliitta 10 and Hakkapeliitta LT3, as well as the non-studded Hakkapeliitta R5, are a testament to a century-long commitment to safety, honed and proven at the ‘White Hell’ facility in Lapland.

Paolo Pompei, President and CEO, Nokian Tyres, said, “The Ivalo Test Center is at the core of our expertise – the place where our practical knowledge of extreme winter conditions originates and evolves. For forty years, Ivalo has been the proving ground for many pioneering innovations, and it will continue to play a key role in our research, development and testing processes.”

Matti Suuripää Nokian Tyres Ivalo Test Facility Manager, said, “There was just a frozen lake when White Hell opened in 1986. A couple guys from the testing department came here with a trailer full of tyres and made a track or two on the ice. There wasn’t a facility, there were just winter conditions. Our test methods have been refined over the years to become more diverse. We have adapted our testing methods to account for different winter weather and more varied conditions. We work hard to develop products that make driving predictable.”

Linglong Tire Appoints Sherif Degheidy To Lead MEA Specialty Tires Division

Linglong Tire Appoints Sherif Degheidy To Lead MEA Specialty Tires Division

Sherif Degheidy has taken on the newly established position of Director Specialty Tires for the MEA region at Linglong Tire, effective 9 February 2026. He is now tasked with leading the strategic direction and sales efforts for the Specialty Tires division across the Middle East and Africa, reporting directly to Jeffrey Hughes, the Director for EMEA. A key aspect of his role involves collaborating closely with product development and marketing teams to position Linglong as a dominant force in the speciality tyre sector throughout these regions.

Degheidy brings a wealth of sector-specific knowledge to the company, having spent the last 12 years at Goodyear. There, he successfully managed the Speciality Tyres portfolio for the Middle East as well as East and West Africa, culminating in his role as OTR Sales Manager. His professional background also includes a period with KAL Tire, where he gained invaluable on-the-ground experience overseeing tyre operations at a gold mine in Egypt. This diverse career path has equipped him with a deep and comprehensive understanding of the industry from industrial, commercial and client perspectives. An Egyptian national, he holds a Bachelor of Science degree in Mechanical Power Engineering.

Degheidy said, "I am very much looking forward to my new role at Linglong Tire and hope to use my many years of experience in the tyre industry to achieve the ambitious goals together with my colleagues in the MEA region. Our most important task will be to optimise existing customer contacts and develop new customers and thus further strengthen our company's market position in the Middle East and Africa.”

Jeff Hughes, Director OTR EMEA, said, "We are delighted to welcome Sherif to the MEA team as Sales Director OTR. He brings a wealth of experience in the Middle East and African markets, and his early work as a site manager of a gold mine in Egypt gives him a unique perspective on how to engage customers, distributors and end users. Over the past 12 years, he has been instrumental in driving and growing a Premier manufacturer's business, and we look forward to him now doing the same for Linglong."

Tana Oy Marks 55 Years Of Innovation In Recycling And Waste Management

Tana Oy Marks 55 Years Of Innovation In Recycling And Waste Management

Marking its 55th anniversary in 2026, Tana Oy is celebrating a legacy defined by the seamless integration of human expertise and advanced technology. For more than five decades, this commitment has driven the company’s evolution in the recycling and waste management sector. Tana has consistently grown in tandem with its customers, engineering robust machines, systems and services capable of withstanding the most demanding real-world conditions. As the industry pivots towards greater efficiency and smarter resource use, this enduring philosophy ensures Tana remains a steadfast partner, poised to deliver uncompromising solutions for future challenges.

A key pillar of Tana’s strategy is the continuous expansion of its global footprint. By strengthening its international presence and local operations, the company positions itself closer to its customers. This approach allows for more integrated support, fosters deeper partnerships and enables the tailoring of solutions to meet specific regional needs, all while upholding the reliability synonymous with a global brand. The strength of this network is evidenced by thousands of machines operating worldwide and longstanding industrial partnerships, milestones that underscore Tana’s reputation as a trusted partner for operational excellence and long-term dependability.

Looking forward, innovation remains central to Tana’s mission, with a focus on solutions shaped by real-world demands. Digital tools like TanaConnect exemplify this, linking machines, data and people to optimise operations and enhance lifecycle management. Simultaneously, the latest generation of recycling machines is designed for high performance and adaptability to evolving material streams. As Tana marks this anniversary, its direction is resolute. Continued investment in its people and technologies, from digital platforms to advanced machinery, ensures it will meet the growing demand for efficient waste-to-value solutions, ready to shape the future with no time to waste.

Goodyear India Quarterly Profit Rises As Labour Code Charge Hits Earnings

Goodyear India Quarterly Profit Rises As Labour Code Charge Hits Earnings

Goodyear India Limited reported higher quarterly profit despite recognising INR 1.94 million of past service costs under India’s new labour codes, as revenue declined year on year.

Revenue from operations for the quarter ended 31 December 2025 fell to INR 606.9 million, from INR 631.7 million a year earlier. Total income was INR 611.5 million, compared with INR 636.4 million.

Profit before tax rose to INR 33.4 million, up from INR 13.3 million in the corresponding quarter last year. Net profit increased to INR 24.6m, compared with INR 9.5 million. Earnings per share were INR 10.68, against INR 4.11 a year earlier.

Total expenses declined to INR 578.2 million from INR 623.2 million. Cost of materials consumed fell to INR 221.5 million from INR 257.9 million, while purchases of stock-in-trade were INR 190.3 million, broadly in line with INR 191.1 million a year earlier. Employee benefits expense rose to INR 52.2 million from INR 44.4 million.

For the nine months to December 31 2025, revenue from operations decreased to INR 1,859.6 million from INR 2,005.4 million in the same period last year. Profit before tax rose marginally to INR 69.8 million from INR 67.9 million. Net profit was INR 51.8m, compared with INR 50.3m.

The company said it had recognised past service costs of INR 1.94 million under employee benefits expense in the quarter and nine months ended December 31 2025, following notification of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020.