December 3 (SeeNews) - Japan's Toyo Tire Corporation has hired Japanese engineering and construction company Takenaka to build its factory in Indjija, in northern Serbia, Indjija mayor Vladimir Gak said.
Takenaka was selected as the leading contractor in the project and construction works will start on December 15, Gak said in a video file posted on the website of Tanjug news agency on Wednesday.
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"A total of 367 million euro will be invested in the first phase of the project development and 537 employees will be hired, according to the investor," Gak said.
Construction works are planned to be completed within 17 months and the factory will produce five million premium tires per year, with its entire output to be exported, he added.
Last month, Serbia's state aid commission approved the allocation of 41 million euro ($48.7 million) in government financing to Belgrade-based Toyo Tire Serbia, the fully-owned subsidiary of Toyo Tire Corporation, for the construction of the factory in Indjija.
Earlier this year, Toyo completed the acquisition of a 63 hectare land plot in the northeastern industrial zone of Indjija where it will build the factory with a footprint of 300,000 square metres.
($ = 0.825484 euro)