Iran’s oldest tire factory has shut down due to “financial problems”, state news agency IRNA reported Wednesday.
Kian Tire was once the “largest producer of off-road tires in Iran” but closed its doors several days ago due to “financial problems and difficulties in the supply of raw materials”, IRNA said.
Founded in 1958 as a joint American-Iranian enterprise according to its website, the company was known for making tires for “military vehicles and large trucks”, IRNA said.
But due to outstanding bank debts, Kian Tire was expropriated and had been run by the state for the past few years, the agency added.
Iran’s economy has suffered under stringent sanctions that were reimposed by the United States after it unilaterally pulled out of a nuclear deal between Tehran and world powers in 2018.
Kian Tire workers had gathered Sunday to urge the state to save the factory, local media said.
More than 1,200 employees are now out of work, according to IRNA.