Iran-Azerbaijan first joint car to come in May 2017 (exclusive)
Baku, Azerbaijan, Sept. 20
By Farhad Daneshvar – Trend:
The car factory jointly founded by Iran and Azerbaijan will launch its first products as of May 2017, an Iranian deputy minister told Trend.
Iran’s deputy industry minister for mining and mineral industries, Jafar Sarghini, has said that Azerbaijan’s AzEuroCar LLC and Islamic Republic’s giant automaker, Iran Khodro, have already taken initial steps for launching a joint venture and its first phase will come into stream the next year.
He added that the plan includes three phases – the production of auto parts, assembly of parts and eventually full production of Iran Khodro’s four brands in Azerbaijan.
Earlier in August, a groundbreaking ceremony for construction of the joint car plant was held in Azerbaijan’s southern industrial park of Neftchala.
The project is estimated to cost $15 million and the Iranian side is expected to provide 25 percent of the total cost.
Four Iranian car brands – Dena, Runna, Soren and Samand – will be produced at the new plant with a capacity of producing 10,000 cars per year.
The documents signed regarding the joint venture cover areas such as licensing, distribution, installation of equipment, engineering and technical support.
The plant, which is expected to create at least 300 job opportunities in its first phase, is currently under construction in an area of 10 hectares.
The officials have announced that 20 percent of the factory’s output will be exported and its products should meet Euro 5 standards.