Iranian Firm Signs Deal to Export Tires to Algeria

Major tire producer Yazd Tire has concluded an export deal with Renault’s Algerian operations.

As per the agreement 50,000 tires produced by the company in central Iran will be exported to Algeria, local automotive website Donyae Khodro reported.

The tires are to be used by the French car giant in its Algerian manufacturing plant in the northwestern port city of Oran.

Renault’s office in Tehran told Financial Tribune that the company is working with Yazd Tire, but did not go into details.

Chairman of Iran Tire Industry Association Mohammad Reza Ganji has said that Renault has agreed to help facilitate exports from Yazd Tire company.

“The French automotive company has placed Yazd Tire on its list of trusted suppliers,” Ganji said.

The company produces tires for passenger vehicles, heavy-duty trucks, bicycles, and motorcycles. It has an annual output of 3.5 million tires with an estimated 10-12% share in the local market.

The firm has a deal with the Netherlands-based tire manufacturer Apollo Vredestein B.V. and produces tires under the Dutch license.

Yazd Tire CEO Eskandar Sotoudeh says his company “has shipped its products to several countries in Africa, Central Asia, and the Middle East, worth $10 million during the last fiscal [ended in March].”

Sotoudeh says his company, one of the recognized brands in Iran, is planning to increase exports this year.

Data released by the Iran Trade Promotion Organization indicates that tire exports to neighboring countries last year reached $24.4 million -- a 29% y/y decline. The main target markets were Afghanistan ($13 million), Pakistan ($2.6 million), Iraq ($2.4 million), Nigeria ($1.7 million) and Turkey ($1.1 million).

Renault’s collaboration with Yazd Tire is part of the former’s declared policy to expand its presence in Iran. The French automotive giant signed a trilateral production deal with the Industrial Development and Renovation Organization and a local private company Negin Khodro in August. The French automotive giant is to invest €660 million ($774 million) in its operations in the country. Training local spare part suppliers and exporting Iran-made cars and auto parts are among Renault’s commitments.

In addition to training, Renault provides technologies for producing the spare parts that meet the French company’s standards. It is also set to open an engineering center in Iran.

Earlier, IDRO Director Mansour Moazzemi was quoted by local media as saying that 10 Iranian auto parts makers have joined Renault’s supply chain and are contributing to the expansion of its operations in Iran.