...

Iran to manufacture cars in Oman

Business Materials 27 January 2016 16:57 (UTC +04:00)

Tehran, Iran, January 27

By Mehdi Sepahvand - Trend:

A contract has been signed between Iran's major car producer Iran Khodro, the Omani government, and a private company of Oman, according to which the three sides will jointly produce cars in Oman.

The contract was signed on the sidelines of an exhibition by the Islamic Republic of Iran in Muscat, IRIB news agency reported January 27.

While the Omani government and the private company there are to provide 80 percent of the funds needed to launch the venture, Iran Khodro will provide its 20-percent share as technical know-how and engineering services.

The factory is meant to turn into Iran Khodro's hub for the Persian Gulf and North Africa markets.

The factory will start by assembling SKDs sent from Iran Khodro base in Iran before settling for real production.

Oman is member to the WTO, as a result of which it has assigned 5-percent tariffs on car imports, turning the country's car market highly competitive.

Latest

Latest