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MAN Sees Iran as Biggest Growth Market

Banking hurdles are slowing MAN’s return to Iran.Banking hurdles are slowing MAN’s return to Iran.

MAN Diesel & Turbo, a German multinational that produces engines and turbo machinery, has said it is increasingly active in Iran, seeing the country as its biggest growth market in the region.

“We are very active in Iran. We’ve restarted our company there, called MAN Iran Power. We are now building a workshop there, I just signed a lease on the shed,” said Gaby B. Hanna, vice-president and head of MEA region for MAN Diesel & Turbo, Trade Arabia reported this week.

A shed refers to a place where engines or turbines are designed and tested before being sold.

MAN Diesel & Turbo is ensuring that it is fully compliant with all regulations when dealing with the Islamic Republic.

“We see Iran, putting aside all the political issues, as a big market for us,” said Hanna, adding: “The biggest growth market for us.”

Commenting on the lack of investment in Iran, Uwe Lauber, CEO of MAN Diesel & Turbo, noted that the country was a very important market before sanctions were imposed.

However, due to the freeze on business dealings,  the country was forced to turn to China and South Korea.

“Over the last couple of years, nothing has been invested. And of course, during the sanctions, we were not able to serve our customers … and to keep plants operating, the Chinese and Koreans were there,” Lauber said.

 Slow Pace

Hanna added that while the opportunity was definitely present in Iran, compliance was significantly slowing the pace of business.

“Until they have their banking sector sorted out, there will still be difficulties,” he added.

 

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