The Middle East's auto giant Iran Khodro Company (IKCO) has announced plans to construct a new production plant in the northern province of East Azarbaijan, Press TV reported.
The new production plant will be the largest in north-western Iran and will have a final capacity of 200,000 units of the Peugeot 206 per year, according to a statement released by the company on Sunday.
IKCO's Azarbaijan CEO Hossein Naqdi said the Tabriz plant would be able to manufacture other models such as the all new 207i hatchback.
He said the production facility would be equipped with state-of-the-art equipment and would generate over 2,500 jobs for the province.
IKCO already operates a production plant in the north-eastern province of East Azarbaijan called Iran Khodro Tabriz which produces roughly 100,000 per year.
IKCO was founded in 1962 and is currently regarded as the biggest automaker in the Middle East.
An IKCO statement said the company alone produced 688,000 passenger cars in 2009, pointing to a 13-percent growth in the manufacturer's turnout despite the crushing global economic crisis.
The company was the receiver of a special trophy at the Third International Nanotechnology Festival in 2010, as the leading company in nano-related auto industry.