China’s Shandong Linglong Tire Co (Linglong) is reportedly now hesitant about going ahead with a previously announced contract to supply technology to a greenfield tire plant in south-eastern Iran, according to an ERJ source.
“They are asking for more time because of pressures by [US president] Trump,” the industry insider told ERJ.
The contract, estimated around €8-10 million, was awarded to Linglong late last year.
The deal would see the Chinese company supplying technology and engineering to the Arya Hamoon Tire production plant in Sistan-Baluchestan province, near the Iran-Pakistan border.
“It looks like they are waiting to see what happens with the nuclear deal.
“It’s probably because Linglong is now expanding its activities in Europe and the US, in particular. So, they don’t want to risk it,” the Iranian source added.
Iran and six world powers, the US, Russia, UK, France, China and Germany, reached a nuclear agreement in 2015. The deal lifted economic sanctions on Tehran in return for a halt in the Islamic Republic’s nuclear activities.
President Trump has voiced his disapproval of the deal since taking office in 2017 and has threatened to drop out if amendments are not made.
The Hamoon Tire project has been scheduled for production in 2020, with capacity to produce 3 million units of passenger car tires as well as TBR tires.
Linglong did not comment in response to ERJ enquiries.
