High-ranking officials from Iranian Diesel Engine Manufacturing Company and Germany's Daimler have reached an agreement on producing three engines in Iran.
Daimler officials, who entered Iran after the enforcement of the Joint Comprehensive Plan of Action, signed a memorandum of understanding with Iran Khodro Company during meetings held in the presence of the companies' CEOs. The partners aim to produce three diesel engines in Tabriz.
IKCO's CEO Hashem Yekezare and Daimler Trucks head, Wolfgang Bernhard, signed the related documents, Mizan Online reported.
Trade and financial restrictions were lifted against the Islamic Republic on Jan. 16, six months after the country reached a deal with six world powers (the five permanent members of the United Nations Security Council plus Germany) on getting sanctions relief against temporary curbs on its nuclear program.
The implementation of the nuclear deal, officially known as the Joint Comprehensive Plan of Action, has helped Iran reestablish international business links with global firms.
The engines to be manufactured in IDEM in Tabriz will be 400 series diesel ones, 900 series meeting Euro 4 and 5 standards for heavy and semi-heavy vehicles and also CNG 900 series covering Euro 6 standards, with 300 horsepower and 7.7-liter capacity.
The MoU stipulates that Daimler will own 30% of IDEM shares, based on which an extended cooperation in manufacturing new products and updating technologies will be guaranteed.
IDEM is a diesel engine manufacturer in the industrial zone in northwest Iran. This company was established in 1972 with joint investment from Iran (70%) and Daimler (30%). The company manufactures more than 12,000 diesel engines per annum.
Last week, Daimler announced it had signed letters of intent with local partners Iran Khodro Diesel and Mammut Group, AP reported.
Bernhard said, "There is a huge demand for commercial vehicles in Iran. We plan to quickly resume our business activities in the market there."
Plans include a joint venture for local production of trucks under Daimler's Mercedes-Benz brand, cooperation on engine production and establishment of a sales arm.
Daimler's business in Iran started in 1953 and sold up to 10,000 vehicles a year there, but was interrupted from 2010 to 2016 by the sanctions.
