London – A nuclear agreement between Iran and the West has been welcomed by industry leaders in the country and can be good news for the tire industry in the Persian Gulf state too.
The deal, which was struck in Vienna between the Iranian negotiating team and a team of diplomats from the US, UK, France, Russia, China and Germany (the so-called 5+1) on 14 July, envisages the lifting of all economic sanctions against the Islamic Republic.
The removal of sanctions could lead to a rapid revival for the country’s oil and gas industry as well as within its once-booming automotive sector.
According to Iranian tire industry expert and head of R&D at Iran's Pars Tire Company, Hooman Tootoonchi , with the combination cheap and readily available oil and a growing population hungry for mobility, Iran’s tire sector is set for accelerated growth over the next 10 years.
“Our country’s need for tires is currently 330,000 tonnes [a year], of which 230,000 tonnes are supplied by internal companies and 100,000 tonnes supplied through imports,” according to Tootoonchi.
It is predicted that our need for tire will reach 800,000 tonnes in 2025, notes Tootoonchi, adding that the demand will require new investments in this industry.
According to the expert, it is estimated that by 2025, there will be a ratio of 300 cars to 1000 persons, meaning that car production will have to reach 1,650,000 units per year.
The growing Iranian market has however been rather closed to foreign players with Chinese tire makers slowing finding their way in.