Tehran – The Iranian government has agreed to offer subsidised dollar rates to local tire makers as the companies struggle to procure natural rubber cost-efficiently.
In a statement 8 Dec, Iran’s customs office said it would be offering the dollar at IRR42,000 to tire makers, as opposed to the free market value of the dollar which hovers roughly around IRR113,000 per dollar.
The move came following a one-month suspension of production at Artawheel Tire, which manufactures Goldstone branded tires in the western province of Ardabil.
According to the Iranian “Tire Industry News” network, Artawheel Tire, with a nameplate production capacity of 30,000 tonnes per year, had to suspend production in November. This, it said, was mainly due to “lack of raw materials”, and specifically natural rubber.
The Iranian rial collapsed in June as US president Donald Trump announced plans to withdraw from an international nuclear deal with Iran and reimpose trade sanctions.