Swiss Stadler signs deal to manufacture metro cars for Iran

Business Materials 28 February 2018 13:19 (UTC +04:00)

Baku, Azerbaijan, Feb. 28‎

By Gazenfer Hamidov – Trend:

Swiss Stadler Rail Company is making its move in Iran, investing to manufacture subway cars for the Islamic Republic.

The company signed a cooperation deal with Iran’s government-owned Industrial Development & Renovation Organization of Iran (IDRO) to finance building 960 metro cars in Iran, IDRO said in a message.

Stadler Rail AG, also known as Stadler Rail Group, manufactures railway rolling stock, with an emphasis on regional train multiple units and trams.

Under the deal the Swiss side will provide 1.1 billion euro worth of financing in the form of LC for manufacturing 728 subway cars for Tehran metro and 232 cars for Karaj metro lines.

The production will be carried out by Iran’s Green Plour Industrial Group (GPIG).

The repayment period of the credit will be 14 years, and is planed to be provided in from of bank to bank between Iranian and European banks.

The contract also envisages transfer of the technology to Iran by Stadler. The latest European technology will be used for manufacturing the metro cars.

Iran’s transport sector has remained underdeveloped due to mismanagement as well as international sanctions.

Last year, IDRO signed a trilateral "shareholders agreement with French company Alstom and Iranian Rail Industries Development Company to manufacture 1,000 subway wagons at IRICO's facilities within three years.

Later in December 2017, South Korean rolling stock manufacturer Hyundai Rotem signed a contract worth 720 million euros with the Islamic Republic Railways to produce 450 suburban wagons in Iran.

And a few days later, Russia signed a 3 billion euro finance deal with Iran for the joint manufacture of 20,000 freight cars, 1,000 passenger cars, 350 locomotives and rail transportation equipment.

IDRO has also another agreement worth 2.5 billion euro with Russia’s CJSC Transmashholding for the joint production of rolling stock.