Tehran – Iran’s Pars Tire Co. is putting more than 96 percent of its shares up for sale as it continues to seek investors to modernise its production technology.
In an advert published 8 Oct in Donyay-e Eqtesad newspaper, parent company Atieh Damavand Group said they sought 900 billion rials (€25.5 million) for the company shares.
Of that amount, 20 percent should be paid upfront with the rest to be paid in three instalments with a typical APR of 16 percent.
Pars Tire’s manufacturing plant is based in Saveh, 100km outside Tehran, and produces the Pirouzi brand.
The factory currently has a nameplate capacity of 40,000 tonnes of bias truck and bus tires, but demand for these products in both domestic and international markets are declining.
In February, Pars Tire announced that it was looking for investors or partners to help it update its old bias technology and produce 40,000 tonnes of radial truck and bus tires.
“Before the 1979 revolution we had a partnership with Pirelli but that stopped and we now have an out-dated technology,” explained the then managing director Hassan Khayyer to ERJ.
“Now we want international partners to come and help us, not just in terms of technology but also in financial terms too,” he added.
According to the official, Pars Tire aims to develop its current plant in three phases, producing a total of 26,000 tonnes of truck and bus radial (TBR); 4,000 tonnes of light truck radial tires and 10,000 tonnes of passenger car radial (PCR) tires per year.
“Our estimation is that the project will cost about €100-120 million, and we want investors to come and take a share of it.”