Economy, Business And Markets

Bavaria Opens Tehran Trade Office

Bavaria Opens Tehran Trade OfficeBavaria Opens Tehran Trade Office

Tehran Chamber of Commerce, Industries, Mines and Agriculture and the Union of Bavarian Economy signed a memorandum of understanding following the opening of the German southeastern state’s trade office in Tehran on Monday.

"Bavaria is all set to enter into negotiations with Iranian economic players, particularly those from the private sector," said the state’s Minister of Economic Affairs, Media, Energy and Technology Ilse Aigner, adding that the 130-member delegation’s five-day Iran visit is testament to their intention.

Referring to the time-honored economic ties between Iran and Germany, TCCIMA head Masoud Khansari said Iran’s private sector seeks to increase cooperation with Germany.  

"The two countries’ industrialists are ready to make a new leap forward in trade relations," quoted Khansari as saying.

“Before the imposition of the unfair sanctions on Iran, bilateral trade stood at over $5 billion, but the figure slid sharply due to the sanctions-induced restrictions.”

Referring to a visit by a 100-strong trade delegation from the state of Lower Saxony in early-October, Khansari said the Iranian private sector played host to two German delegations within a short period of time, which holds out the promise of expansion of ties with this European powerhouse.

> Industrial Cooperation

Most Iranian industries were built upon German technology, said Iran’s Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh in a separate meeting with the head of the European delegation, Ilse Aigner.

“Iran is keen to set up joint ventures with foreign investors to develop its industries. We are also willing to seize a share of your regional market. Now you can view Iran as the hub of industrial, mining and trade activities,” he added.

Iran and Germany can cooperate, among other things, in sectors of power, advanced industries, electronics, food, medical equipment and steel as well as light, heavy and commercial vehicles.

The Iranian minister noted that investment opportunities in chain stores, small- and medium-sized enterprises and industry clusters are also at the ready for Germany.

“Iran is targeting the goal of manufacturing three million automobiles a year. To this end, our country can install German-made engines for buses and trucks under license from Mercedes-Benz, Scania and AB Volvo, provided the production phase is carried out in Iran,” he said.

The industries minister also referred to the 24-million-ton production capacity of Iran’s steel and said the figure is set to rise to 55 million tons per annum.

"The estimated capacity of Iran’s aluminum production is 450,000 tons, which are planned to hit the 1.5 million-ton mark in 10 years," he added.

Aigner expressed her country’s eagerness to join forces with Iran.

“Legal stability is of utmost importance to investors and we are pursuing long-term investments in Iran. Bavaria’s strong suit is its industry and it has recently ventured into digital services arena,” she said.

The Bavarian delegation comprises representatives from industrial enterprises, mostly those active in the area of automobile and electronics industries.

In August, another Bavarian economic mission headed by Chief Executive Officer of Bavaria’s Business and Industries Association Bertram Brossardt traveled to Isfahan to assess trade opportunities in the central province.

The southern state of Bavaria is Germany’s biggest state, hosting many industries, including BMW, Audi and Siemens.