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)

Dunlop To Exit Karting Tyre Segment By 2027

Dunlop To Exit Karting Tyre Segment By 2027

Sumitomo Rubber Industries, Ltd., which operates the Dunlop brand, will discontinue the supply of karting tyres by the end of 2027 as part of a strategic review of its business and allocation of management resources.

The company said it would continue supplying products to existing customers until December 31, 2027.

Dunlop has produced karting tyres since 1976, supplying products homologated by the Commission Internationale de Karting-FIA (CIK-FIA), under the Fédération Internationale de l’Automobile, as well as tyres accredited by the Japan Automobile Federation.

The company said its products had supported a wide range of users, from recreational drivers to young drivers aiming to compete at higher levels, and had contributed to the development of karting participation.

It added that the decision followed a review of its medium- to long-term management strategy and changes in the business environment.

The group said it would continue to contribute to motorsport activities, while expressing appreciation to customers and organisations that had supported its karting tyre business.

Apollo Tyres To Unveil Full Endumile Long-Haul Range At IAA Transportation

Apollo Tyres To Unveil Full Endumile Long-Haul Range At IAA Transportation

Apollo Tyres Ltd will launch three new long-haul tyres at IAA Transportation 2026 in Hannover, completing its EnduMile range for truck and bus fleets and marking its first full portfolio for long-distance operations.

The new EnduMile LHA, LH Front and LHD tyres will be presented alongside the existing EnduMile LHT trailer tyre at the event, which runs from 15 to 20 September. The additions extend the company’s offering across steer, drive and trailer axle applications.

The products have been developed in Europe with a focus on balancing mileage and fuel efficiency, reflecting a key requirement for long-haul operators seeking to manage total operating costs. The range carries the Three-Peak Mountain Snowflake marking, indicating suitability for winter conditions.

The EnduMile LHA and LH Front are designed primarily for steer-axle applications, while the LHD is intended for drive axles. The tyres incorporate tread designs and compounds aimed at supporting durability, traction and consistent wear. According to the company, controlled European field tests showed mileage improvements compared with a leading tier 1 competitor.

The LHT trailer tyre, introduced in 2023 with an additional size added in 2024, is available in 385/55 R22.5 and 385/65 R22.5 sizes. It is rated A for rolling resistance and external road noise, and is designed to reduce fuel consumption and support retreadability.

Daniele Lorenzetti, chief technology officer at Apollo Tyres Ltd, said: “Completing the EnduMile range represents an important milestone for Apollo Tyres and demonstrates our commitment to the European truck and bus market. Long-haul operators can be wary of low rolling resistance tyres if improved fuel efficiency comes at the expense of the high mileages they expect. With the EnduMile range, we have worked towards balancing fuel efficiency and mileage to help fleets reduce operating costs. Developed in Europe using world-class facilities and cutting-edge technology, the range has been rigorously tested and validated across multiple European markets and operating conditions to meet the highest standards in terms of performance, safety and reliability.”

The full EnduMile portfolio will be displayed together for the first time at the Hannover event, including on Apollo Tyres’ stand in Hall 12.

Tana Oy Names Allan Bartholin Jacobsen As New Territory Business Manager

Tana Oy Names Allan Bartholin Jacobsen As New Territory Business Manager

Tana Oy has announced the appointment of Allan Bartholin Jacobsen as its new Territory Business Manager, effective 1 September 2026. He will be responsible for advancing the company’s international sales efforts, specifically concentrating on enhancing partnerships with dealers, identifying new avenues for growth and providing dedicated support to customers within designated regions.

Bringing over three decades of expertise in international sales and business development, Jacobsen joins the Finnish company from Eggersmann GmbH, where he managed sales strategies for recycling equipment across Europe and international markets. His previous roles involved cultivating dealer networks, expanding into new territories and driving sales performance in regions spanning Scandinavia, UK, Ireland, Switzerland, Italy, Southeast Asia, Australia and New Zealand.

This strategic hire underscores Tana’s ongoing commitment to bolstering its commercial operations and global outreach. The company continues to rely on its international dealer network to ensure localised service, deep market understanding and sustained operational benefits for waste management and recycling clients worldwide.

Gerd Schreier, VP – Sales, Marketing & Channel Development, Tana Oy, said, “Allan’s extensive industry knowledge, international experience, and proven ability to develop strong dealer partnerships make him a valuable addition to Tana. His experience in building markets and supporting distributors fits well with our ambition to grow closer to customers and create long-term value through our global dealer network.”

Jacobsen said, “I am excited to join Tana and become part of a company with a strong reputation for robust, intelligent waste management solutions. I look forward to working with Tana’s customers and dealers to support their business and help turn waste into value.”

DTNA Taps Automotive Aftermarket Veteran Matt Futrelle To Head TBR Business

DTNA Taps Automotive Aftermarket Veteran Matt Futrelle To Head TBR Business

Dunlop Tires North America (DTNA) has named Matt Futrelle as its new Associate Vice President for the Truck and Bus Radial (TBR) division, effective 1 August 2026. The executive will assume leadership over the company’s TBR operations, directing strategic planning and growth initiatives while reinforcing the organisation’s dedication to high-quality products and service across the North American market.

Futrelle joins the role with over two decades of experience within the automotive aftermarket sector, recognised for his capabilities in leadership, operational efficiency and commercial expansion. His professional history includes building effective teams, cultivating strong client partnerships and implementing strategic frameworks that produce consistent, long-term performance outcomes for the businesses he has served.

Darren Thomas, CEO and President, DTNA, said, “Matt's leadership experience, industry expertise and commitment to excellence make him an outstanding addition to our leadership team. We are confident that his vision and customer-focused approach will help accelerate our growth in the TBR business and strengthen our position in the marketplace.”

Futrelle said, "I couldn't be more excited to join the Dunlop Tires North America team. We see significant opportunities to increase our participation in the North American Commercial Truck Tyre market bringing even more value to our commercial tire dealer and fleet partners. I am also happy to be a part of expanding the iconic Dunlop brand across North America. The brand holds a special place for me because I have such great memories growing up racing on Dunlop motocross tyres."