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, said “19 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