Rubber corporation Trayal in Krusevac expects to sign a deal with Italian automotive group Fiat in early June on supplying tires for Fiat's Punto cars made in Serbia, said Trayal sales manager Nebojsa Djenadic, reports ANSAmed news agency.

Tire testing is underway and is to be completed by mid-May, Djenadic said. Trayal plans to supply 40,000 of its T-400 tires a year for Punto cars made by Fiat Automobili Srbija, Fiat's 67%-33% joint venture with Serbia, he added, noting that the company will seek to include other tires in the supply deal.

According to company officials, Trayal exported over 60,000 passenger vehicle tires in the first two months of 2010 and generated some 900,000 euro in export revenues, with the bulk of the shipments going to Germany, France, and the UK.

According to earlier reports, Trayal said in February it hoped to supply one million car tires for Fiat a year, noting that the deal would not apply to Fiat cars made in Serbia only, but to the entire Fiat group.