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9.2.2 Automotive corporate news
Iran's leading automotive company Iran Khodro (IKCO) has taken an investment decision to establish an auto production plant in Turkey’s eastern province of Van, Daily Sabah reported on October 27.
The $300mn factory, to initially employ around 600 people, would reportedly manufacture vehicles including vans and minibuses.
IKCO CEO Farshad Moqimi and an accompanying delegation were reported to have held talks with the Van governor's office, the Van Chamber of Commerce and Industry, Turkey’s General Directorate of Development Agencies and the Presidency Investment Office with a view to realising the investment as soon as possible.
Van Governor Mehmet Emin Bilmez was quoted as saying: "We attach great importance to all kinds of investments in our city. Khodro managers are extremely eager to invest. Our meetings were quite positive. They care about the fact that our city is close to the production centres in Iran.
"Van is located in the east of Turkey, but it is also in the west of Iran. Therefore, for them, Van is the gateway to the West. We are ready to provide all kinds of support for investment because the biggest problem in this city is unemployment. This problem also feeds terror and violence. We are ready to do our best to eliminate unemployment," he added.
Due to the economic embargoes imposed by the US on Iran, Turkey is seen as an attractive alternative for opening up to international markets for IKCO. Necdet Takva, chairman of the Van Chamber of Commerce and Industry, was cited as saying: "An investment of this scale requires a minimum area of 200,000 square metres. This development should not be considered only as a factory to be established by Khodro because big investments will come to our city with the suppliers.
"The contribution to indirect employment will be much higher. It will contribute greatly to the solution of the unemployment problem in our city."
"Khodro" means "automobile" in Persian. IKCO has cooperated with many world brands, such as Peugeot, Renault and Suzuki since its establishment in 1962.
A joint venture formed by Iran’s second largest automaker SAIPA (Société Anonyme Iranienne de production des automobiles Citroën) and South African and Zimbabwean partners is to introduce a small B-segment crossover hatchback model to southern African markets, the Iranian company has announced.
The Johannesburg-based JV, named the Mureza Auto Company, plans to use Iranian-built complete knock-down (CKD) units for assembly as it seeks to build up sales in South Africa and Zimbabwe markets. Its initial investment will amount to $1mn, according to the company’s CEO, Tatenda Mungofa.
The first model showcased by the company is the “Prim8”, a debadged SAIPA crossover model known as the “Kwik” on the Iranian market. Assembly of the vehicle is to start next year.
Assembly operations will later move to Willowvale plant in Zimbabwe and an ex-Hyundai plant in Botswana.
"Our components are manufactured in Iran and South Africa, but Mureza's ultimate objective is to design and manufacture vehicles for Africans. We are targeting production of 100 units per month and the vehicle selling price will be $13,500. Arrangements for Zimbabwe dollar purchases will be made," a company spokesman told Newsday.
SAIPA originally unveiled the Kwik model on the Iranian market in 2017 at the
62 IRAN Country Report November 2019 www.intellinews.com
