Iran, France to Launch Joint Venture in Automotive Industry
TEHRAN (Tasnim) – Iran and France plan to establish a joint company to produce automotive parts for French automobiles in the Islamic Republic, the managing director of Azin Khodro, a major Iranian automotive parts manufacturer, announced.
Speaking to the Tasnim News Agency on Sunday, Reza Rezaei pointed to a second contract between Azin Khodro and Faurecia, the 6th largest international automotive parts manufacturer headquartered in France, and said according to the agreement, a joint company is slated to be established to produce automotive equipment.
Each of the parties to the contract plans to invest $20 million in the joint venture, he said, adding that the latest technologies in the world will be used in the automotive parts produced in the joint company.
The remarks come against the backdrop of a new wave of interest in ties with Iran after the country and six world powers on July 14, 2015 reached a conclusion over the text of a comprehensive deal on Tehran's nuclear program and implemented the agreement on January 16.
The nuclear deal between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) terminated all nuclear-related sanctions imposed on Iran.
Experts believe that Iran's economic growth would rise remarkably after the final nuclear deal takes effect.
Iran’s automotive industry is the second largest industry of the country, after its oil and gas industry, accounting for 10% of the country's GDP.