Final contract for joint venture production of three products .....
Final contract for joint venture production of three products signed with Peugeot at the presence of Iran's minister of industry, trade and mine
According to Shata News agency, the contract was signed by managing director of Iran Khodro, Hashem Yekke-Zare, and deputy managing director of Peugeot-Citroen company, Jean-Christophe Quemard to coproduce three products of 208, 301 and 2008, of which the 2008 will then be introduced to market from February 2017. This model will be offered at a price of some 70 to 80 million Toman. The other two models will be manufactured on a partnership basis of 50 percent on each side and with the amount of 200 million euro as the share of each party.
Final contract for joint venture production of three products signed with Peugeot at the presence of Iran
" The initial works for this contract started after the JCPA and realization of some issues in the field of industry often take some time", said Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh in the meeting for signing the final contract, .
Mr. Nematzadeh went on to say that the shop for installation of equipment has been prepared and the partnership letter was signed after the visit of Iran's President to France. In addition, the final contract and 19 subsidiary contracts have been signed between two parties.
Mr. Nematzadeh expressed hope that in next month there will be a similar contract between Iran Khodro Diesel with a German company. "In addition we will come up with several agreements in automotive and ship building industries in coming months with our foreign partners", added Mr. Nematzadeh.
" Utilizing maximum local content is a mandatory article in this contract and the production starts from 40 percent of local content which will later come to 80 percent, said Mr. Nematzadeh.
In this meeting, managing director of Iran Khodro, Hashem Yekke-Zare, announced that the first joint product named IKAP will be introduced to market in early 2017. The contract is a win-win contract to the benefits of both parties and all considerations and interests of Iran have been included in the contract. This will help us reach to fair prices and new products with new technologies through platforms Peugeot will deliver to us, added Yekke-Zare.
According to managing director of IKCO 30 percent of the products will be exported to foreign markets.
Morad Majlesi was earlier appointed as the managing director of the joint company.
Some 15000 cars of the three aforementioned models will be manufactured during the first three years of production, announced by the IKCO managing director.