Feb 28, 2017, 4:32 PM

Iran to ink 6 weighty contracts in auto industry

Iran to ink 6 weighty contracts in auto industry

TEHRAN, Feb. 28 (MNA) – An official at Tehran Chamber of Commerce has announced that six major contracts in automotive industry will be finalized with foreign investors by March 21.

Mansour Moazami, Head of Energy Committee of Tehran Chamber of Commerce, made the remarks while addressing the 32nd session of the committee’s meeting.

He underlined that the contracts will mark a turning point in the country’s automaking industry as the nation will gain access to vehicles with state-of-the-art quality and standards by the end of 2017.

The official also reported on signing of a €70mn contract between Iran and Belgium to manufacture automatic gearboxes inside the country.

“By inking a deal with Saipa, Citroen has also attempted to make a $160mn investment in Iran in the form of a 50-50 venture,” he continued.

Moazemi also pointed to the agreement between IMIDRO and Renault of France adding “the French side enjoys 60% of the share in the contract while the rest belongs to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).”

“With a total of worth of 900 million euros, the contract will officially come into force as of March 05 when a joint venture will be opened between the two sides,” he continued.

The member of Tehran Chamber of Commerce went on to state that another contract will be sealed between Mammut Group and Volkswagen Automaker company.

As a result of the six new contracts in the country’s auto industry, an aggregate total of three billion dollars of foreign investment will be attracted. Managing Director of Industrial Development & Renovation Organization of Iran (IDRO) Mansour Moazemi said a cooperation accord had been signed between Iran Khodro (IKCO) and Peugeot of France while another agreement will be inked with Germany’s Mercedes-Benz Automobile manufacturer.

“Accoridngly, major foreign automakers have launched cooperation with Iran within framework of long-term or investment contracts,” he noted.

The official underscored that arrival of credible automobile manufacturers will never preclude presence of oil giants in the Iranian industry and called for assisting the Oil Ministry in finalizing new model of oil contracts known as the Iranian Petroleum Contracts (IPCs).

HA/3918792

News ID 123903

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