Auto Industry Expanding in Western Region

Industries Minister Mohammad Reza Nematzadeh opened a new line of auto parts production at a local company, Marpich Bakhtar, in Kermanshah Province this week.

Kermanshah region is gradually emerging as the new home of IKCO outside of the capital with new production lines and assembly plants .

While touring the production line, the minister said he expects the western region to become a major auto hub in the next few years.

Marpich Bakhtar officials estimate that the new production line of Peugeot parts will help increase the carmaker’s annual output to 1.4 million units.

Nematzadeh, while admitting the poor state of the auto parts industry said when he took office in 2013 several parts makers had to shut down due to unpaid debts by struggling car manufacturers inside the country.

“The government has been able to assist several companies in restarting,” Nematzadeh said without elaboration.

 Creating Jobs

In addition to Marpich Bakhtar, the minister launched the production plants of a subsidiary of Iran Khodro in the same city. It will produce the Peugeot 405.

With 300 workers the factory will produce 30,000 vehicles a year, according to the minister.

Earlier this month IKCO opened another production center in the province for the Peugeot Pars model.

The factory in the city of Sahneh has 200 workers, Mehdi Maleki, CEO of the IKCO Kermanshah said in May.

Annual production at the plant is expected to reach 15,000 units and meet demand in the western regions including Kurdistan and Kermanshah.

He said 570 billion rials ($15.2 million) has been invested in the production line and “79% of which was made by Ministry of Industries, Mining and Trade, with the rest by IKCO.”