Iran's Dezli Sanat to double car tyre capacity

ERJ staff report (DS)

Cologne, Germany -- Dezli Sanat Co. has modified its plans to make tyres in Iran and now expects to build the biggest car tyre plant in the Middle East, due on stream early in 2013.

A year ago, ERJ reported that the company was expecting to build a tyre plant to make 25 000 tonnes per year of car and truck tyres. According to Mohammed Vokalaei, managing director, that project has moved on and is now double the size. He said the company had won some new investors who had sought an increase to 50 000 tonnes, per year but only for car tyres.

He said this corresponds to around 6 million units per year. He said the tyres will be in 16- 17- and 18-inch sizes. Most will be sold into the OE and replacementmarkets in Iran, but the company is also talking to export agencies and would be interested to speak with anyone who can help the company sell tyres into export markets. Vokalaei said he expects most of the export tyres to go to Iran's neighbours: Iraq, Afghanistan and Pakistan.

Vokalai said the project will be the biggest tyre factory in the Middle East and he is currently in the final stages of ordering machinery and equipment for the project. He has a credit line of Euro 140 million and is currently negotiating to increase the land avilable to the project.

The project is in the south of Iran, about 100 kmsouth of Shiraz city. Vokalaei, speaking at the Tire Technology Expo in Cologne, said he was currently discussing with VMI to buy equipment and some technology. He expected to complete on that deal in the next few months.

He said the company has got some new investors, who wanted to participatre in the project, but only if it focussed on passenger car tyres, as this is where the main demand is in Iran at present.