Iran to Invest $440 million in Tyre Factory

Irans’s Industrial Development and Renovation Organization (IDRO) has reportedly earmarked $440 million dollars for the construction of a tyre factory in the country’s western Kordestan province. According to a report in the Tehran Times, the goal ultimate goal is for Iran to become self-sufficient in terms of tyre production.

Ezzatollah Zarei Hanzaki, the IDRO deputy for industrial investments, was quoted as saying the project will produce “100,000 tons of tyres for various vehicles” annually. Hanzaki said share in the plant would be split 51:49 between IDRO and Kordestan Tire Company, Moj News Agency reported.

Iran reportedly consumes 300,000 tons a year, while only 200,000 of tyres are produced in the country.  With demand projected to reach 480,000 by the end of 2014 the thinking behind the new factory is clear.

According to the reports, the new plant will be built 30 kilometres away from Sanandaj on the road there and Hamedan. The plant is expected to create 850 jobs.