According to the Iranian Labour News Agency (ILNA), Zagros Tire has already signed a deal to procure machinery from Germany. The report did not give further details.
Also, Iran’s Tasnim News said that the 55,000-tonne project will see a €260-million investment from the private sector with extra financing of €130-million provided by Iran’s Industries and Mines Bank.
The plant aims to ramp up production to 110,000 tonnes a year in the future.
Once completed, 37 percent of the plant products, which include passenger and light vehicle radial tires as well as truck and bus radial tires, will be exported to Iraq, Yemen, Kazakhstina, Uzbekistan and other neighbouring states.
The export value, said Tasnim News, will be approximately €50 million.
Iran launched a scheme to add 200,000 tonnes/year of local tire production capacity in the country last year.
The programme, which involves the construction of four, 50,000-tonne plants, gained momentum after the lifting of international sanctions against the Islamic Republic in January.
Three of the four projects will be constructed in partnership between IDRO and private investors. The fourth, Arya Hamoon Tyre, which will be constructed by IDRO in Pakistan-bordering Sistan-Balulchestan province.
The construction on the first project, operated by Nikro Gostaresh Khorramabad Tire Co., started in July 2015.
Construction on the second plant, Razi Tire Co., started in February, followed by Arya Hamoon Tire in March.
Ms Farzadnia declined to respond to ERJ queries for further information.