The construction of a styrene-butadiene rubber (SBR) production plant, an important petrochemical byproduct used in tire production, goes underway in Pars Special Economic Energy Zone in the southern Bushehr Province on Wednesday.
With a capacity to produce 136,000 tons of SBR per year, the project is planned to be completed in 29 months, Moj News Agency reported.
According to the Iranian Petrochemical Investment Group, the project's contractor, the unit will receive $290 million in funds from letters of credit opened by the National Development Fund of Iran.
The group, a subsidiary of the Persian Gulf Holding Co., holds a 95%-stake in the new SBR unit.
In 2012, more than 5.4 million tons of SBR were processed worldwide. About 50% of car tires in the world are made from various types of SBR. Its particular advantages include excellent abrasion resistance, crack resistance and generally better aging characteristics.
Around 75% of the unit's SBR output will be used in tire production and the remainder to produce floor coverings.
Iran raised tire production as various international tire brands such as Bridgestone, Continental and Michelin halted operations in the country in recent years due to sanctions.
According to analysts, an anticipated revival in the automotive industry after lifting of the sanctions is expected to translate into double digit growth in Iran's tire industry over the next five years.
