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Industrial Development and Renovation Organisation along with Iranian government broke ground for its 3rd greenfield tire plant in the country

Iran: The news came from South Eastern Iranian city of Zabol, where the Iranian Mining Minister broke ground on the third tire plant with an anticipated production capacity of 50,000 tons per year.

The third tire plant in the country will be set up in the Pakistan-bordering Sistan-Baluchestan province which is one of the four greenfield tire plant projects in the country by joint efforts of the government and the Industrial Development Renovation Organisation (IDRO) in Iran, however, the project will be wholly owned by IDRO.

The plant once in full operation is expected to produce a cummulative of 25 kilotons per year of passenger car and light truck tires and 25 kilotons of heavy commercial vehicle tires. The 50-hectare facility is expected to create 1,400 jobs once finalized, and will be set up in Ramshar Industrial Zone.

Reza Allahyari, head of IDRO industrial operation projects, said19 companies are taking part in the tender and are placing their bids to carry out the engineering, procurement and construction of the plant and the winning contractor, he added, will have to procure 25-30 percent of the project from local resources. In addition to that, they will definitely have to procure the main machinery from European sources.”

According to a recent report published by TechSci Research,Iran Tyre Market Forecast & Opportunities, 2020”, Iran has the largest automotive industry among the Middle Eastern countries. However, on account of sanctions imposed on Iran by P5 nations (China, France, Russia, UK and US) due to continuous expansion of nuclear programs by the country, the automobile production and sales witnessed a decline during 2010-14. However, negotiations between Iran and P5 nations have been completed and move is expected to stimulate economic activity in the country over the next five years, which in turn, would boost growth prospects for automobile and tyre industry in Iran.

As per TechSci Research, this step taken by IDRO with involvement of Iran government, the tire market in the country is anticipated to grow with opportunities for more local and global 

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