TEHRAN, Iran, May 1
Trend:
The Chief Justice of Iran has approved the sale of government shares in Heavy Equipment Production Company (HEPCO) at the stock exchange and transferring its ownership to a big mine consortium to solve financial problems.
Iran's Deputy Minister of Industry, Mine and Trade, and the Governor of Markazi Province have suggested the immediate assignment of the government shares of HEPCO that has been approved by Ebrahim Raisi, Trend reported citing ISNA.
A specific package has been suggested to solve the liquidity and basic problems of the company.
The Heavy Equipment Production Company is an Iranian corporation that manufactures construction equipment, agricultural machinery, railroad cars, trucks, as well as equipment for oil, gas, energy, metal and mining industries in Arak.
There is uncertainty over HEPCO's ownership, liquidity shortage and basic materials that are used in production alongside mounting debts.
The company workers' representatives have discussed their demands with the Chief of Justice that included the government ban on import of second hand road construction machinery, monitoring the process of assigning shares and reviewing HEPCO's financial issues.
The Privatization Organization will no longer have the company’s ownership, while 3 percent of the government share of the company will be sold at stock exchange; the remaining shares will be assigned to a large mining consortium by IMIDRO suggestion.
The income from the sale of the company's shares at the stock exchange shall help the production leap and allow HEPCO to resume work. It has been suggested that the revenue from stock exchange sale will be transferred to the country's treasury and later be allocated to HEPCO as a five-year loan.