The state aid of EUR 41 million for the realization of the investment project of Toyo Tire Serbia is in line with the rules, as decided by the Commission for Control of State Aid (KKDP).
According to the document published on the KKDP website, the funds and the incentives in Indjija will be allocated through the Ministry of Economy, and the Government of Serbia has given its approval.
The allocation of incentives of EUR 41 million aims to support the realization of the investment in the construction and equipping of the tire factory in the territory of the Municipality of Indjija, where at least 523 new workers will get permanent employment by the end of 2023.
Toyo Tire Serbia previously got a subsidy of EUR 3 million for the investment in Indjija through the allocation of 637,455 m2 of state land without compensation.
The total investment of Toyo Tire Serbia amounts to EUR 382.7 million, and at least a fourth of the investment must be financed from the funds which do not entail any kind of state aid.
The obligation is for the new jobs related to the investment and the investment to be kept within the territory of Indjija for at least five years from the completion of the investment project. The investor obliges not to reduce the number of permanent employees below 526 in the period of five years within the completion of the investment.
Toyo Tire Corporation has been developing since 1945. It produces tires in seven factories and automotive components in four factories, whereas the corporation has 12.8 thousand employees.
The production of Toyo, Nitio and Silverston tires makes up 85% of the total sales of Toyo, and the greenfield investment in Serbia will be a center for the production of five million tires a year for the European market and the market of Russia.