Iran opens €180m tire manufacturing plant

Sanandaj, Iran – Iran’s Barez Tires has started up a production plant in Sanandaj's Dehkalan Industrial town in western province of Koredestan, according to local media reports.

The €180-million project was opened on 25 March in the presence of Iranian president Hassan Rowhani and industries minister Mohammad Reza Nematzadeh.

Built in an area of 44 hectares, the facility has seven production and warehousing halls and is an extension to Barez’s production unit in southern city of Kerman.

The unit's curing section has been up and running for the past three years, with a 3,000 tires/day capacity, according to Nematzadeh.

"Green tires from Barez's facility in Kerman are cured here in Koredestan,” the minister added during the inauguration tour.

The plant produces 44 kilotonnes per annum (ktpa), or 6 million units, of passenger car and light vehicle radial tires.

According to an ERJ source in Iran, while local suppliers provided moulds and presses, roughly 80% of the machinery for the plant was supplied by big contractors including Mesnac, Rodolfo Comerio and Konstrakta.

In terms of technology, the industry insider told ERJ that Barez used two “technology stages” for the unit.

“The first phase came from a long-term technology agreement that Barez signed with Continental in mid-90s.  The second stage was from a Chinese consulting group, which had worked with Pirelli before and are very up-to-date,” he added.

The new plant is part of Barez’s bid to increase its production capacity to 140 ktpa across its units in Kerman and Kordestan. The company produced 71.5 ktpa of tires in 2012.

Barez currently employs up to 2,000 people and the new facility in Sanadaj will add 1,000 more new jobs.