Iran to build $440 million tyre plant - report

ERJ staff report (DS)

Teheran -- Iran's State-controlled newspaper is reporting that the Industrial Development and Renovation Organization of Iran (IDRO) is to build a joint venture tyre factopry in the West of the country. The aim of the project is to bring Iran to full self-sufficiency in tyres.

The Tehran Times quoted the Moj News Agencyl, saying that the project will be 51 percent owned by IDRO and 49 percent by the Kordestan Tire Company. It said the investment will be $440 million (Euro 300 million) and the plant will emply 850.

No mention was made of a completion date, but history has shown that projects in Iran normally take longer to complete than equivalent projects elsewhere, due to restrictions on foreign currency and import restrictions.

The newspaper quoted Ezzatollah Zarei Hanzaki, IDRO's deputy for industrial investments saying the plant would make 100 000 tonnes of tyres annually. The report did not specify whether the tyres will be for cars or trucks, saying only that they will be, "for various vehicles."

The report quoted Hanzaki saying that Iran currently produces 200 000 tonnes of tyres annually, while demand is around 300 000 tonnes. However, by 2014 demand is projected to reach 480 000 tonnes.

The plant will be located in the Western Kordestan Province, on the road between Sanandaj and Hamedan, about 30 kilometers away from Sanandaj, according to the report.

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Repoert from Tehran Times (Iran)