• History Of Barez Industerial Group Technology

      In mid 80s at the height of an unfair war imposed on the Country of Iran and amidst the related political and economic restrictions, construction of a tire manufacturing plant in Kerman Province (situated at 25km into Kerman Rd. heading towards Joopar) based on planning and implementation through utilizing domestic resources was on the agenda of the Ministry of Industries of that time. From the initial stages of planning to build such a plant, its founders had the vision of eventually acquiring the very top rank among tire manufacturers across the nation. At its inception, the company was called “Kerman Tire Complex.” However, after two decades of growth in a wide range of activities and establishment of other subsidiaries like Sirjan Tire Complex, Saman Barez Company, Barez Tarabar Company, etc., the name of the company was changed to “Barez Industrial Group.

      In 1986 upon completion of the task of equipping the company’s specialized office and conclusion of a mutual contract with Dena Tire Company (formerly Bridgestone) on the transfer of technical know-how and also following efforts to conform the composition of the first product to the requirements of the market that the execution phase of the project literally commenced. In the early years, the National Industries Company and Melli Bank of Iran were the major shareholders: however, within a few years, the Social Security Administration of Iran managed to acquire all the shares of the National Industries Company ultimately leading to significant improvements in the financial status of the Group.
      Despite the lack of sufficient foreign exchange currency during the same years, this company was able to conclude a contract with a Japanese firm on securing the required finances in order to be able to obtain the necessary machinery to run the project operations, whereby making the production phase of the plant a reality in 1993 when the task of installation and commissioning of the acquired machinery and quipment came to an end. Carrying out such a considerable project successfully, not only raised the capacity of the national tire production by 25,000 tons, but it also paved the way for other consequential accomplishments, namely the tire manufacturing plant’s achievement to gain the capability to design, realization of the transfer of the technical know-how required for tire manufacturing for the first time in the country and also creation of job opportunities for the people of Kerman Province which at the time was considered to be an impoverished and one of lesser developed regions in the country.
      The initial top management of the company and the leadership team of the Group - who for the most part have remained active throughout company ranks - have diligently followed the Managing Director’s perspective for the company which is to be “Number One” in all fields. The Group’s endeavour to be the best has been the root cause of a series of organizational changes and innovations within Barez as well as that of other domestic tire manufacturers. The vision of being number one which still today is the main policy and motto of the company and its sustainable realization is the main priority of the Group and the entire team of staff.

      The main objective of Barez Industrial Group in 2015 is to maintain its position as number one in the industry and also to attempt and export 25% of its total production volume.Fortunately, after the commissioning of the manufacturing plant, the process of reaching production to full capacity was made possible in a very short time. In fact, in 1996 the plant reached its projected capacity once all the phases of construction and commissioning were completed successfully. It was around the same time that the company instituted an expansive distribution network and elevated its annual production capacity to 38.6 tons which enabled it to market its manufactured products on a grand scale, thereby turning the name “Barez” into a widely recognizable brand. It is worth mentioning that from the start, the aim of founding Kerman Tire Industries Complex (under the commercial brand name Barez) was to aid in the economic development of the nation as well as to push start the growth and promotion the underprivileged Kerman Province. As a matter of fact, the establishment of this company in conjunction with the establishment of Bahonar Copper Complex was two of the most important factors assisting in the expedition of the industrialization process of Kerman Province. Current employment of 2,000 personnel throughout the region along with training numerous specialized experts by the company can be labeled as two of the most significant accomplishments so far.
      Commissioning the manufacturing plant in 1996 in full capacity coincided with notable changes in the country’s auto manufacturing industry one of the most crucial of which was the higher rate of tendency towards using radial tires. About the same time, diplomatic relations also began to improve which paved the way for interactions with international companies ultimately leading to the transfer of the technical know-how for passenger car wired radial production into the country.
      It was during the same period that Barez Company was able to take initiatives to construct a production line for the manufacture of steel belted radials with an annual capacity of 3.3 million rings of tires through the transfer of the required technology from the Russian Tire Center and subsequently from the Italian company by the name of Marangoni. Not only the aforementioned measure can be considered as a fundamental transformation for Barez Group, but it was also an innovative and profoundly effective measure for the entire industry as a whole. In fact, it was after the commissioning of this production line that Barez Company virtually entered what is known as the “Product Radial Trend” period and was able to conclude a ten-year long contract for the promotion of the technology used in the manufacture of passenger car radial tires and the transfer of the required know-how applied in the production of steel belted haulage truck and bus radial tires with the German company Continental for production of 160 thousand tires per year.
      Quantitative development of the manufacturing plant products and supplying a wide range of various products within the expansive distribution network literally made the application of integrated information systems a necessity for Barez. Therefore, starting 1998, the Group made an all out effort to design and institute an integrated management system by utilizing domestic resources which eventually led to twenty five individual information systems which play a rather significant role in decision makings processes adopted by the Group management team.
      From 2007 onward, Barez Industrial Group commenced its “Production Scale Increase” which not only enabled it to establish a production line for the manufacture of biased tires, but it also resulted in an increase of production lines to manufacture passenger car, truck and bus radials as well as the construction of a new production line for manufacturing road and mine tires in 2010 with a capacity of 70,000 tons per year (equal to ten million tires annually). Parallel to these phases of further developments, steps were taken as outlined below to plan measures to reach a total capacity of 140,000 tons per year (10 million tires annually

      • Implementation of Phase 1 and Phase 2 of Barez Tire Kurdistan Province Project
      • Doubling the capacity of production lines for manufacturing steel belted haulage truck and bus tires to 360,000 tires per year
      • Plan to replace the existing production line for the manufacture of truck and passenger car tires

      Fortunately, products of Barez Industrial Group have enjoyed wide acceptance in the market and their sales has had an upward trend year after year. In 2012 alone, sales revenue from products exceeded IRI 6,171 billion sold mostly to local clients comprised of the Group’s dealers and domestic auto manufacturers representing 21% of total market share. At the present, 1979 personnel are employed by the Group (excluding subsidiaries) which are mainly stationed at the company headquarters in the City of Tehran and Kerman Tire Complex. In recent years, Group leadership team has devoted a great deal of its time to the institution of a culture of excellence based on the framework of the EFQM model which is in close conjunction to the specified objectives for the year 2015 as outlined below labelled the “Period of Export.” In order to implement these objectives properly and also to establish the

      appropriate coordination required, the activities of the Group leadership are monitored critically by Department of Guideline and Transformation Management.
      Despite the recent stagnation in the nation’s auto industry and considering the increase in economic hardships stemming from sanctions imposed on the country over the past couple of years, the country’s auto industry still remains one of the key sectors which most certainly is capable of reaching its previous trend of progress and development through state sponsored support.
      The main product of the tire industry, namely tire which is considered a complementary product to all vehicles, is an important link in the auto industry’s manufacturing chain which can prevent a slump in the rate of production throughout the auto industry, stop an undesirable increase in foreign exchange rates and reduce liquidity in companies. Meanwhile, certain measures by the country’s regulating organizations, which have led to a disproportionate increase in prices of raw materials within the past one or two years, have in turn created considerable difficulties in the industry. Although production output in 2012 was similar to that of 2011, but there has been a significant drop in the production output of some of the domestic tire manufacturers leading to a complete halt of developmental progress in some of their projects. However, it is hoped that a declining trend in sanctions or their complete lift along with the commencement of the needed support for the national industries, more attention will also be extended to the country’s tire industry affecting a positive impact on rate of production.
      The share of Barez Industrial Group in 2012 of the country’s 313 ton tire market was about 71.5 tons which translates to 34% of the total market share enabling the Group to stay ahead of its main competition with a production difference of 40,000 tons for the eleventh consecutive year.
      The wide range of products offered by the Group including passenger car, truck, bus, agriculture and road construction vehicle tires, in particular the capacity to manufacture 3.5 million passenger car radial tires and 140 thousand haulage truck radial tires through the application of the technology of the German company Continental has turned Barez into one of the leaders of the industry in the nation.