TEHRANIran Industrial Development and Renovation Organization (IDRO) is in the final stage of talks to award a contract for a greenfield 500,000- metric ton/year tire plant to a local contractor, according to sources.
The IDRO has decided to award the Arya Hamoon Tire project, being built in Sistan-Baluchestan province on the border with Pakistan, to semi-state-owned EPC contractor Sabir International, a source told European Rubber Journal (ERJ), a sister publication of Tire Business.
The plant will be set up in Ram-shar Industrial Zone in an area of 124 acres and is expected to create 1,400 jobs once completed.
Iran broke ground on the project in March, and Reza Allahyari, the head of IDRO industrial operations, told ERJ at the time that 19 companies had bought tender documents to take part in the bidding.
However, according to the ERJ source, only two companies took part in the bidding and both were Iranian.
Sabir had a considerably lower bid, the source added, but the IDRO is still negotiating with the company to lower its offer.
The project proposal by Sabir also includes technology provided by China's Sailun Tire Co. Ltd. and machinery provided by Qingdao Mesnac Co. Ltd.
Arya Hamoon is one of the four greenfield tire plant projects pursued by the Iranian government and led by IDRO.
The plant will produce 25,000 metric tons of car and light truck tires and 25,000 metric tons of heavy commercial vehicle tires per year.
Unlike the other three projectswhere IDRO has a 19-percent share in the project partnering with the private sectorthis project is completely owned by IDRO, mainly due to lack of interest from local investors.
This report appeared in European Rubber Journal, a United Kingdom-based sister publication of Tire Business.