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)

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Yokohama ATG-owned Galaxy, a brand of tyres for construction, earthmoving and material handling, has entered the UTV and ATV segment in India with Hulk PSX and Everest PSX.

The company stated that the tyres are for use in the off-road segment and in utility applications, providing durability, life and traction across terrains. They are engineered to provide puncture resistance, stability and comfort for utility and recreational operations.

The Hulk PSX is for use off-road across terrains. It features a compound for tyre life and sidewalls for cut resistance. Radial construction is for performance, while shoulder blocks assist cornering and handling. It includes a tread design for traction and a tread-to-void ratio for wear resistance and stability. The model fits 12-inch and 14-inch rims to cater to UTV configurations.

On the other hand, the Everest PSX is suitable for utility applications, providing performance, durability and comfort. It offers resistance to cuts, chips and abrasions. Pattern continuity is for roadability and vibration reduction. The tyre provides traction and stability, including wet surface grip. It includes rim protection and puncture resistance for operations. The model is offered for 12-inch, 14-inch and 15-inch rims for UTV applications.

Dyutiman Chatterjee, Chief Technology Officer, Yokohama-ATG, said, “Building on its 100+ years legacy, Galaxy’s entry into the UTV/ATV category is a strategic step in strengthening its presence globally. These tyres are designed to meet the evolving needs of customers seeking performance, reliability and durability in extreme conditions.” 

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Michelin has completed the acquisition of Flexitallic, expanding the French group’s industrial sealing activities as it seeks growth in higher value-added markets under its “Michelin in Motion 2030” strategy.

Houston-based Flexitallic, founded in 1912, manufactures engineered sealing solutions used in industries including energy and chemicals, where equipment operates under extreme conditions and safety standards are stringent. The company operates 17 manufacturing facilities globally and produces seals, gaskets, sheet products and specialty filler materials.

Michelin said the acquisition would broaden its sealing solutions portfolio and strengthen its access to the aftermarket. The transaction also combines Flexitallic’s expertise in engineered sealing technologies with Michelin’s global industrial network.

Flexitallic employs about 1,200 people and generated sales of about $220m in 2025.

The companies said the deal would support demand from both traditional industrial sectors and emerging energy markets, where sealing technologies are required to ensure operational reliability and safety.

Flexitallic provides what it describes as “Total Joint Integrity” services, combining sealing products with onsite technical support aimed at improving long-term operational performance. Its specialist services division, Integra Technologies, offers onsite inspection, maintenance and compliance support across industrial assets.

Michelin said the acquisition reflected its strategy of using its industrial and materials expertise to expand beyond tyres into adjacent engineering and high-technology businesses.

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TBC Corporation, one of North America’s largest marketers of automotive replacement tyres through wholesale and franchise operations, has elevated Rachel Tibor to the role of Chief Marketing Officer for its wholesale division. She now joins the company’s executive team and will oversee the insight-driven go-to-market strategy, reporting directly to President and CEO Don Byrd.

Tibor originally joined TBC in 2023 as Group Vice President of Wholesale Marketing, where she was responsible for developing the wholesale strategy, including marketing leadership, brand positioning and customer engagement. Her career spans more than two decades, with prior leadership roles in marketing and brand strategy at Office Depot and Procter & Gamble.

She holds a bachelor’s degree from Carnegie Mellon University. The promotion reinforces TBC’s focus on data-led marketing as it continues to expand its wholesale and franchise tyre operations across North America.

Byrd said, “Rachel has created deep alignment across multiple disciplines and provided data-driven approaches that deliver a best-in-class customer experience. As Chief Marketing Officer, Rachel will continue to provide rigor and focused strategies that will drive TBC forward.”

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Continental has announced a leadership transition at its supervisory board level, with Sabrina Soussan, 56, elected as the new chair. The unanimous decision took place during the board’s constituent meeting, held immediately after the company’s Annual Shareholders’ Meeting. Soussan, who had just been elected as a shareholder representative, succeeds Wolfgang Reitzle, who departed as planned following more than 16 years of service on the board.

A German-French top executive, Soussan brings over 25 years of automotive and transport sector experience to Continental, positioning her to guide the firm’s strategic realignment. Her career includes serving as CEO of Siemens Mobility and, most recently, as CEO and chair of France’s SUEZ Group. She previously held senior roles at Continental itself and was appointed to the supervisory board by a local court in September 2025. Soussan also serves on Henkel’s Shareholders’ Committee and is standing for election to Stadler Rail’s board of directors.

At the same constituent meeting, the supervisory board extended the executive board appointment of Chief Executive Officer Christian Kötz by three years, securing his tenure until March 2030. The early renewal reflects strong confidence in his leadership, particularly his success in strengthening Continental’s tyre business amid challenging market conditions and his role in reshaping the company as a focused tire manufacturer.

Kötz, who has been with Continental’s tyre division since 1996, joined the executive board in 2019 and has led key areas including passenger-tyre replacement and commercial-vehicle tyre units, as well as global research and development for passenger-car tyres. He has served as Continental’s chief executive since 1 January 2026.

Soussan said, “Being elected as chair of the Supervisory Board fills me with joy and respect. I would like to thank the shareholders and the Supervisory Board for placing their trust in me. Continental is strongly positioned as a focused tyre manufacturer. I look forward to paving the way for a successful future together with the Supervisory Board and Executive Board.”

Kötz said, “I would like to thank the Supervisory Board for placing its trust in me. We have proven in recent years that we have the right ingredients for success: top technology in our products, state-of-the-art manufacturing, efficient distribution and a strong brand, supported by a strong team. We will continue to drive forward our success strategy and make Continental even more resilient.”

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