Ground broken for Tire Plant in Sanandaj, Kordestan Province of Iran
Iran:
Iran
has broken ground on Razi Tire greenfield tyre plant in the western city of
Sanandaj in Kordestan Province of Iran. Ganji brothers,
owner of Artawheel Tire in Ardabil province and Yazd Tire, own and run Razi
Tire. The plant will produce passenger car-SUV tyres and all-steel light truck
tyres. The plant is expected to incur a cost of over USD226 million, for which
European and Western Banks are being considered as the most preferred choice
for financing the project.
According
to Kamran Afshar-Imani, Vice President and Member of the Board of Directors at
Razi Tire, “The tyre plant will produce 50,000 metric tons of tyres per year
and is expected to commence production in March 2016.” He further said, “The company is in talks with
major European technology and machinery suppliers, including Pirelli & C.
S.p.a., HF Tire Tech Group and VMI Epe.”. The ground-breaking ceremony for Razi
Tire was attended by Mr. Mohammad Reza Nematzadeh, the Industry and Mines Minister
and Mr. Reza Norouzzadeh, head of the Industrial Development and Renovation
Organisation (IDRO). Razi Industrial owns 81 percent of Razi Tire, while the remaining
19 percent is owned by IDRO.
TechSci
Research projects that increasing domestic production of tyres
would restrict the penetration of Chinese tyres and would facilitate the
Iranian government’s expectations to increase its domestic tyre production
capacity by 200,000 tons per year.
The
recent report published by TechSci
Research, “Iran Tyre Market
Forecast and Opportunities, 2020” depicts that due to imposition of sanctions
in Iran, a majority of the demand for tyres in the country is being met by imports.
However, easing of sanctions would lead many foreign tyre brands to commence
operations in Iran. It is projected that many global tyre players will
establish domestic tyre manufacturing units in order to avoid custom duties,
which would allow them to differentiate their product offerings on the basis of
price eventually increasing their penetration in Iran.