IKCO-Algeria Project Kicks Off
IKCO-Algeria Project Kicks Off

Iran Khodro (IKCO)-Algeria Project Kicks Off

Iran Khodro (IKCO)-Algeria Project Kicks Off

The largest car manufacturer in the Middle East, Iran Khodro, has taken measures to establish a production site in Algeria by launching a joint venture with the African country called IKCO-Algeria.    
In a meeting with the CEO of Algerian Industrial Group of Famoval, IKCO’s CEO Hashem Yekezare stressed the necessity of observing the project’s timetable.
“Today we dispatched the first shipment of the equipment for the production line to Algeria. We are supposed to install them by March 20 and start SKD production by June 2017,” he said.
Yekezare noted that the agreement to establish IKCO’s site in Algeria was signed earlier this year with an Algerian company, according to a press release.
“Iran Khodro’s investment in the project was made by providing the required equipment for a production line in the African country and offering engineering knowhow,” he said.
Algeria’s Ambassador in Tehran Abdel Moneim Ahryz, who was attending the meeting, praised the expansion of ties between Iran and Algeria.
“With the significant cultural commonalities between the two sides, the agreement can pave the way for further economic relations,” he said.
“The agreement can play a fundamental role in the expansion of economic and political relations between Iran and Algeria.”
The Famoval chief said many leading foreign car manufacturers have already invested in Algeria but we are determined to be the third largest company in the country after Renault and Hyundai.
Mohammad Rahmoud added that his company has set specific targets to top the list of leading car manufacturers in the region’s export markets.
Rahmoud announced that the joint venture, IKCO-Algeria, has been registered.
”We insist that in the first two years of the investment operation, the manager of the joint venture be chosen by IKCO’s top management, given their high technical knowhow and experiences,” he said.
“According to our timetable, 8,000 units of Dena are set to be produced in 2017 with a localization of 5%, but the figure will reach 25,000 units in 2020 with a localization of 40%,” he said.
The annual production capacity of the site working a single shift daily is set to be 10,000 vehicles. In the first phase, Dena vehicles will be assembled and its supply would be carried out after localization and receiving the required license for import.

Short URL : https://goo.gl/83jkTZ
  1. https://goo.gl/FPkFwq
  • https://goo.gl/Iarn69
  • https://goo.gl/2toRJB
  • https://goo.gl/I21o3e
  • https://goo.gl/L1Qn7D

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...

Add new comment

Read our comment policy before posting your viewpoints