Iran allocates $9.1B to revive idle industrial units

Business Materials 11 August 2017 16:14 (UTC +04:00)

Tehran, Iran, Aug 11

By Mehdi Sepahvand –- Trend:

Iran has allocated 300 trillion rials ($9.1 billion at 32,843 rials per USD) to revive idle and bankrupt industrial units.

Money will go to some 10,000 small-size factories to help them get on their feet, according to Ali Yazdani, CEO of Small Industries and Industrial Zones Organization, Mehr news agency reported, Aug 11.

Besides this, 100 trillion rials is also set to go to active industrial units to help them improve their operation, official noted.

Over the past four years Iranian government allocated 170 trillion rials to the revival of 28,000 small and mid-sized industrial units, said Yazdani.

According to the Iranian law, industrial units with less than 50 workers are considered small, those with up to 100 workers are counted as mid-sized, and those with more than 100 workers are considered to be large industrial units.

Industrial profitability in Iran is about 6-7 percent, whereas commercial (especially imports) profitability hovers around 300-400 percent. This situation was the main cause of bankruptcy for many industrial enterprises.