Publish Date: 4 March 2017 - 16:28

TEHRAN, Mar. 04 (MNA) – An official said a preliminary deal has been inked with Germany’s Siemens to manufacture equipment for the electricity industry.

Arsalan Fathipour, member of Iran Electricity Industry Syndicate, informed reporters about the reached agreement with the German engineering giant for knowledge and technology transfer as well as construction of new equipment for power generation industry saying “during a visit to Germany, an Iranian delegation signed a contract with Siemens under which a plant will be built for manufacturing power equipment under license of the German firm.”

The official estimated that the agreement with Siemens will be finalized into a contract within two months; “products from the joint venture, such as transformers, can be exported besides being used for domestic consumption,” he highlighted.

Fathipour went on to underlined that collaboration with Siemens was aimed at accelerating production, reducing costs and expanding the export of electricity equipment.

The plant will be built in Parand, a town about 65 kilometers southwest of Tehran, said the official recalling that Iran was a producer and exporter of various transformers in the electricity industry in the Middle East.

Siemens has made notable headways in cooperation with Iran after international economic sanctions were canceled last year.

The Munich-based engineering and manufacturing company has signed a deal to deliver more than 20 F-class turbines and share expertise in turbine manufacturing as part Iran's push to upgrade its aging electricity infrastructure and build power plants with improved efficiency.

Siemens said in January that it had received a major order for 12 ‘compressor trains’ for two onshore natural gas processing plants in Iran. The deal was described by Mohsen Nayebzadeh, CEO of Siemens in Iran, as “Siemens' first huge oil and gas order since the easing of sanctions in January 2016.”

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