Iran’s oldest tire maker resumes operations amid financial woes

Tehran – Iran’s first tire manufacturer Kian Tire has resumed production after a short halt in operations earlier this month.

The company has been going through a serious financial turmoil and filed for bankruptcy over six months ago, an informed source told ERJ 27 April.

“In the past few months, Kian Tire has had liquidity issues and faced difficulties sourcing raw materials.

“That eventually led to a temporary closure of the plant earlier in the month,” he said.

According to the source, production has now resumed at the plant following a IRR100-billion (€2.2 million) round of fund raising by the management team.

Located in Chardangeh, south of Tehran, the company has the capacity to manufacture 70,000 tonnes of bias off-the-road tires under the brand Alborz and employs 950 people.

Originally a state-owned company, Kian Tire was privatised in 2003 and has since seen a decline efficiency and production, the source said.

According to the source, the current owner of the company is in negotiation with semi-private pension funds and organisations for the sale of the facility.

Kian Tires has not responded to ERJ's request for comments.