TEHRAN, Iran—China's Shandong Linglong Tire Co. Ltd. has agreed to become the engineering/procurement/construction (EPC) and non-EPC contractor for the construction of a greenfield tire plant in Iran, according to a senior Iranian official.
Massoud Mohammadi, CEO of Arya Hamoon Tire Co., said Linglong is expected to provide production technology for the project, which is being built in southeastern Iran.
"(Linglong) will most likely supply the technology for the production of the agreed 50 sizes of tire," Mohammadi said.
"We are adamant that as the technology supplier, they should also give us the licence too," he added.
The Iranian side also expects to discuss branding with Linglong in its upcoming negotiations, according to the CEO.
The project is less than 10 percent complete despite a groundbreaking staged in March 2016.
However, Mohammadi is optimistic that the company will start trial production within two to three years.
"Production capacity is 3.1 million units a year, which will include both passenger car tires and truck and bus tires," he said.
Of that amount, Hamoon Tire expects to export 30 percent to neighboring states.
Mohammadi said that machinery suppliers on the list include European, Chinese and Iranian manufacturers, but did not elaborate further.
Located in Sistan-Baluchestan province on the Pakistan border, the plant is being set up in Ramshar Industrial Zone in an area of 50 hectares, and is expected to create 1,400 jobs once completed.
Iran announced plans for the construction of four greenfield tire projects in 2015.
Of those, three have materialized and are at early stages of negotiations with technology suppliers.