Iran's largest automaker, Iran Khodro (IKCO), has implemented 125 localization projects in various fields, which are expected to reduce capital flight by €133 million per year.
Adel Pirmohammadi, CEO of auto parts manufacturer SAPCO, said indigenization ventures would save up to €76 million in auto parts and €26 million in raw materials, IKCOPress reported.
“Optimization of the car manufacturing process will save €24 million and the localization of molds and auto mechanic equipment will save an additional €7 million,” he added.
The official noted that localization projects would require an investment of €13 million, adding that IKCO intends to raise a portion of the funds by selling unproductive properties and assets, and procuring bank loans and private sector investment.
Pirmohammadi said the imported component of production for each vehicle is €1,715, of which 67% are spent on importing raw materials and electronic components.
April 24, 2021 19:11
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Localization Projects to Curb IKCO Capital Flight by €133m
IKCO has launched a series of localization projects, which would curb capital flight by €76 million in auto parts and €26 million in raw materials
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