The CEO of Sina Energy Holding made a one-day visit to the city of Mahdishahr in Semnan Province to assess the progress and implementation of the Iran Tire Expansion Project.
According to Sina Energy, Alireza Salmanzadeh, during his visit to the Iran Tire Expansion Project, toured various sections of the project and emphasized the need to accelerate its implementation.
In this visit, the Technical and Engineering Deputy of Sina Energy Holding, along with the CEOs of Iran Tire and Payandan companies, accompanied Salmanzadeh.
The Iran Tire Expansion Project, initiated in 2020, aims to produce 25,000 tons of various types of tires annually through the construction of a new factory in Mahdishahr, Semnan Province, spanning an area of 30 hectares.
To expedite the project’s implementation, in early May 2024, Iran Tire Company secured the required funding of 10 trillion rials through the issuance of Murabaha bonds on the stock exchange.
According to Amir Shaghaghi, CEO of Iran Tire, the expansion project is divided into several phases. In the first phase, the factory is set to launch by 2025 with an annual production capacity of 4,000 tons of tires. This phase is currently underway, backed by a successful funding of 10 trillion rials for purchasing necessary equipment and machinery. In the second phase, the production capacity will be increased to 25,000 tons of tires, supported by appropriate financing from the capital market. This expansion aims to enable Iran Tire to capture a 20% share of the domestic tire market.
The project aims to address several goals, including supplying tires for the country’s transit industry, such as truck and bus tires, reducing the import of heavy tires and preventing foreign currency outflow, increasing market share, and creating 1,700 job opportunities in Mahdishahr, Semnan Province.
