President Hassan Rouhani is set to inaugurate the Iran Khodro-AzEuroCar LLC joint production plant known as Azermash during his visit to Azerbaijan in the coming weeks.
Iran's Minister of Economic Affairs and Finance Masoud Karbasian said, “During a state visit to Azerbaijan later this month, President Hassan Rouhani will inaugurate the Azermash joint venture,” YJC reported.
Rouhani is scheduled to visit to visit Azerbaijan's capital Baku by the end of March. He will be accompanied by a business delegation. A joint business forum between the traders of Iran and Azerbaijan has been scheduled to be held on the occasion of the Iranian delegation's visit.
Earlier in the day, Behrouz Olfat, the head of Europe and America Affairs Bureau of Iran’s Trade Promotion Organization, said, “The production line will be inaugurated by President Hassan Rouhani before April 20.”
In the first phase, the production plant will manufacture the locally-designed sedan named Dena.
Both officials were talking on the sidelines of the 12th meeting of Iran-Azerbaijan Economic Commission on Tuesday.
The Azerbaijani delegation in Tehran is led by Azerbaijan's economy minister and co-chairman of the joint commission, Shahin Mustafayev, who met with President Hassan Rouhani on Tuesday.
>Manifestation of Bilateral Ties
The production plant is located in southeast Azerbaijan in Neftchala Industrial District that was inaugurated in September 2017 by Azerbaijan's President Ilham Aliyev.
During the inauguration ceremony, Aliyev visited the site of the auto factory that was still under construction.
After the inauguration of the district, Aliyev said the Azermash-IKCO joint venture is “a manifestation of Iran-Azerbaijan relations”, the Azeri state news agency reported.
The auto joint venture is the largest company hosted by the industrial district.
The Azeri president also said the JV is aimed at reducing the republic’s reliance on auto imports, noting that the vehicles produced at the joint company will be exported.
Earlier, IKCO export manager, Sabina Nobari, said Iran Khodro is set to export vehicles to the Commonwealth of Independent States through its Azeri operations.
Iran’s automotive industries have ties with several of these countries and the process was strengthened after President Rouhani took office in 2013 and said closer ties with neighbors are among his foreign policy priorities.
The joint venture between IKCO and Azermash was created in 2016 and according to Azeri deputy economy minister, Sahil Babayev, $15 million have been allocated for building the factory in Neftchala.
Two weeks ago, Babayev said “80% of the plant have been constructed and the first vehicles should roll out in early 2018”.
The plant will have an annual capacity of 10,000 cars and produce four models, namely Dena, Runna, Soren and Samand, and employ 300 people.
IKCO started operations in Azerbaijan in 2005 by launching the sale of its locally- produced sedan Samand. In the past decade, 4,500 Iranian vehicles were sold in that country.
