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)

Omni United Appoints Dr Mika Lahtinen As Associate VP For Raw Materials And Compounding

Omni United - Dr Mika Lahtinen

Omni United has announced the appointment of Dr Mika Lahtinen as Associate Vice-President for Raw Materials and Compounding. The appointment is intended to internalise expert-led design and performance for the rubber compounds used in the company’s flagship brand, Radar Tires.

Dr Lahtinen joins the Singapore-headquartered firm with over 20 years of experience in tyre material innovation. He previously led material development at Nokian Tyres and managed global technology for tyre oils at Nynas, operating across Finland, Sweden and Singapore.

He holds a PhD in Polymer Materials Technology, and at Omni United, he will be involved in the development of materials and compounds, as well as collaboration with global suppliers to advance the company's tyre technology.

The move is designed to provide the manufacturer with direct control over the chemical engineering of its products. Omni United, founded in 2003, markets a range of consumer and commercial tyres under brands including Radar Tires, Patriot Tires and RoadLux.

Omni United sells products in more than 50 countries. Its primary brand, Radar Tires, has been manufactured as a carbon-neutral product since 2013. The integration of in-house compounding expertise is expected to support the company's commitment to innovation and logistics solutions within the global automotive sector.

In an statement the company stated, ‘Bringing Mika’s expertise in-house is a strong addition to our team. It allows us to take a more direct, expert-led approach to the design and performance of Radar Tires’ rubber compounds. With over 20 years in tyre material innovation, Mika has an extensive background in developing breakthrough materials, developing cutting-edge compounds, and collaborating with global suppliers to advance tyre technology.’

Continental Tyres Power 10 Highest-Volume EV Brands In EMEA Region

Continental Tyres Power 10 Highest-Volume EV Brands In EMEA Region

Continental has further strengthened its foothold in the electric mobility sector, with its original equipment tyres now featured on the 10 highest-volume electric vehicle manufacturers in the Europe, Middle East and Africa (EMEA) region for 2025. This achievement highlights the tyremaker’s strategic commitment to the expanding e-mobility market. Worldwide, the Hannover-based company supplies tyres to 17 of the 20 largest electric vehicle producers, including a mix of premium and volume brands such as BYD, Volkswagen, Stellantis, BMW, NIO, Hyundai and Renault. In the Americas, Continental currently equips eight of the top 10 manufacturers, while in the Asia Pacific region – the most dynamic market – it supplies seven of the top 10. The Chinese market remains especially fluid, with new high-volume players emerging in the rankings over the past year.

Electric vehicles impose distinct demands on tyres. Their heavier weight, due to large batteries, and the instant torque delivered during acceleration contribute to increased tyre wear. Moreover, because these vehicles operate more quietly than traditional combustion-engine cars, tyre rolling noise becomes more perceptible. Continental anticipated these challenges early, focusing on developing tyres with low rolling resistance, reduced noise and long mileage, regardless of the powertrain. The company introduced its first energy-efficient tyre line in 1993 with the ContiEcoContact, and the latest iteration, the EcoContact 7, is now available.

This new model incorporates aerodynamic enhancements, including a golf ball-inspired ‘aerodimple’ structure on the sidewalls, which minimises air turbulence and improves energy efficiency. Such features make it well-suited for both electric and conventional vehicles. Global electric vehicle sales continue to rise, with the Fraunhofer Institute for Systems and Innovation Research projecting a 23 percent increase in battery-electric vehicle sales for 2025, reaching 12.7 million units. The Asia-Pacific region, led by China, remains the dominant market with double-digit growth, while Europe follows as the second largest. North America saw registrations hold steady at 1.4 million vehicles.

Dennis Bellmund, responsible for the global original equipment business at Continental Tires, said, “The EMEA region confirms the success of our strategy. We began designing our passenger tyres for low rolling resistance, quiet rolling noise and high load capacity very early on. These properties are especially important for electric vehicles.”

Antonio Tulio Jou Inchausti

Antonio Tulio Jou Inchausti has stepped into the role of Chief Executive Officer at Unique Rubber Technologies, taking charge at a pivotal moment as the company sharpens its focus on innovation, operational discipline and long-term growth in the global retreading industry. Speaking exclusively to Tyre Trends, he unfolds the forward path.

What are the first three strategic priorities you plan to redefine Unique Rubber Technologies in your first 12–18 months as CEO?

Focus will be strengthening what truly sustains the company viz-a-viz our people, culture and responsibility for the future. The safety of our teams comes first, and throughout 2026, we are implementing a robust SafeStart programme to further embed a culture of care, prevention and accountability across the organisation.

At the same time, we will continue to invest strongly in the development of our people, empowering them to deliver their best every day and reinforcing talent as a key pillar of our success. These priorities support our sustainable growth journey, honouring the legacy of the 50 years we have recently completed while preparing the company for its next phase of evolution, guided by consistency, purpose and long-term vision.

Where do you see the company under-positioned today and how do you intend to close that gap?

Unique Rubber Technologies is well positioned as one of the most relevant players in the retreading market in Latin America, holding leadership positions through its Tipler and Borex brands. Our continuously expanding dealer network delivers strong value to the market by offering products and services recognised for its high quality, reliability and outstanding mileage performance, exactly what end customers expect from our solutions.

Looking ahead, our focus is on expanding into new and complementary markets, growing alongside our existing customers while also addressing opportunities in product segments where we see room to evolve through innovation and embedded technologies in our processes.

How do modern manufacturing and retreading heritage come together in your value proposition?

We are proud to operate one of the most modern manufacturing facilities in the industry, which reinforces safety, consistency and product quality. At the same time, we remain committed to preserving and advancing the company’s legacy by promoting the efficient use of natural resources, inherent to our retreading processes, and by contributing to lower transportation costs through products that combine high mileage performance, safety and reliability.

How will you balance research and development ambition with cost discipline and time-to-market pressures?

Innovation at our company is guided by a disciplined and long-term approach. Our research and development teams continuously monitor developments not only in the domestic market but also in key international markets, ensuring we remain aligned with the most advanced product concepts, equipment and manufacturing technologies available globally.

At the same time, we consistently optimise our processes to maintain a cost structure that is well aligned with market demand, allowing us to remain competitive while accelerating time to market. Our perspective is not short-term; we regularly review our strategic planning with a five-year horizon, focusing on improvements that will translate into superior products and services over time.

How do you balance innovation with market needs to deliver consistent performance?

We firmly believe that high-quality products delivering superior mileage and performance will always earn customer preference and balancing innovation with market needs, execution discipline and sustainable results is at the core of how we continue to move forward every day.

What specific inefficiencies in operations or supply chain have you already identified and what measurable improvements should stakeholders expect?

As with any industrial operation operating at scale, there are always opportunities to improve efficiency and our focus has been on identifying areas where greater integration, predictability and agility can be achieved across operations and the supply chain.

We have already identified opportunities to optimise process flows, reduce variability and strengthen coordination with key suppliers, leveraging data, standardisation and better planning tools. These initiatives are designed to improve lead times, increase reliability and enhance overall operational efficiency without compromising quality or safety.

What measurable improvements can stakeholders expect from this strategy?

Stakeholders can expect measurable improvements in service levels, operational consistency and cost efficiency over the coming cycles as well as a more resilient supply chain capable of supporting our growth strategy. Our approach will be focused on delivering tangible results and keep building a continuous and stronger operational foundation for the future.

How will your approach to client engagement differ from the previous co-CEO model, particularly with global OEMs and strategic partners?

Approach to client engagement is built on continuity while further strengthening clarity, consistency and proximity in how we engage with our customers and partners. The company has established strong relationships over the years and my role as CEO is to enhance those connections through more direct and structured strategic dialogue, particularly with global OEMs and key strategic partners.

We will ensure closer alignment between our commercial, technical and operational teams, enabling faster decision-making and a more cohesive value proposition across markets. Beyond transactional interactions, our focus is on deepening long-term partnerships through collaboration, joint development initiatives and shared growth agendas.

With the former co-CEOs remaining active in governance bodies, how will decision-making authority be clearly defined to avoid strategic overlap or delays?

The transition to a single-CEO model is supported by a well-defined governance structure that clearly separates strategic oversight from executive decision-making. While the former co-CEOs continue to contribute through governance bodies, their role is focused on guidance, continuity and long-term perspective, rather than day-to-day management.

Executive authority and accountability are clearly defined within the leadership team, enabling agile, timely and consistent decision-making. This structure ensures strategic alignment without overlap, preserves institutional knowledge and allows us to move forward with clarity, speed and discipline, fully aligned with our long-term objectives and growth strategy.

Will future growth come from expansion, new products or deeper market penetration?

Our future growth will be driven by a balanced combination of geographic expansion, innovation in product platforms and deeper penetration in existing markets. We see significant opportunities to strengthen our presence where we already operate by expanding our portfolio, increasing customer proximity and extracting more value from established relationships.

At the same time, we will selectively pursue geographic expansion into markets that align with our capabilities and long-term strategy. Innovation remains a key enabler across all fronts, allowing us to develop new product platforms and solutions that respond to evolving customer needs and regulatory requirements. This diversified growth approach provides resilience, scalability and consistency, ensuring that the company continues to grow in a disciplined and sustainable manner.

How prepared is the company to meet stricter regulatory and ESG demands?

Sustainability is deeply embedded in our business model and operational practices, well beyond branding or positioning. Our retreading solutions inherently contribute to the efficient use of natural resources and lower environmental impact, which places us in a strong position to meet increasingly stringent regulatory and ESG requirements.

We continuously invest in safer, more efficient processes, advanced technologies and responsible sourcing to ensure compliance with evolving regulations across the markets we serve. At the same time, we work closely with customers to align our products and services with their sustainability and compliance mandates, offering solutions that combine environmental responsibility, safety, performance and economic value.

Which competitors or substitute technologies pose the biggest threat to your business model over the next five years?

Rather than focusing on individual competitors, we closely monitor broader industry dynamics and substitute technologies that could influence customer choices over the next five years.

The main competitive pressure comes from solutions that promise lower upfront costs or alternative lifecycle approaches, even if they do not always deliver the same levels of performance, safety or sustainability over time.

How does the company turn industry and regulatory shifts into competitive advantage?

Our business model is built on proven technology, high-quality products and superior mileage performance, which continue to be highly valued by customers focused on total cost of ownership and operational efficiency.

We remain attentive to technological shifts, regulatory changes and evolving mobility trends and we continuously invest in innovation, process optimisation and product development to ensure our solutions remain relevant and competitive. This proactive and disciplined approach allows us not only to mitigate potential threats but also to turn industry evolution into opportunities for differentiation and long-term growth.

How will you define success in this role?

I will define success in this role by the strength and sustainability of the organisation we continue to build. Success means a company where people feel safe, engaged and empowered, where customers recognise us as a trusted and long-term partner and where our products consistently deliver quality, reliability and performance.

It also means advancing the company’s strategic objectives with discipline, clarity and consistency while preserving the values and legacy built over the past 50 years. Ultimately, success will be reflected in the company’s ability to grow responsibly, adapt to change and create lasting value for customers, employees and all stakeholders.

ARMA Appoints Vahid Rashidi As New Vice President Of EPR To Lead Sustainability Initiatives

ARMA Appoints Vahid Rashidi As New Vice President Of EPR To Lead Sustainability Initiatives

Alberta Recycling Management Authority (ARMA) has announced the appointment of Vahid Rashidi as its new Vice President of Extended Producer Responsibility (EPR). The leadership addition marks a strategic step in the organisation's ongoing evolution to better serve the needs of Albertans.

Rashidi brings extensive experience and strategic vision to the role, with a strong track record in driving impactful results. His appointment underscores ARMA’s commitment to navigating complex regulatory systems and strengthening its leadership capacity. He is expected to play a pivotal role in advancing the organisation’s EPR initiatives and reinforcing its dedication to sustainability and compliance excellence.

His results-oriented approach aligns with ARMA’s mission to deliver responsible solutions for industries and communities across the province. The organisation anticipates that his leadership will accelerate progress towards its goals, inspire internal teams and help position ARMA for continued success within a shifting regulatory landscape. The appointment has been met with enthusiasm as the authority looks to build on its momentum in environmental stewardship.