French car firm Renault has agreed to step up production in Iran, at a refurbished factory which eventually will produce 300,000 cars each year.
The deal can be a joint venture with the Iranian government along having a private firm called Parto Negin Naseh, although Renault will have a 60% stake.
The revamped factory will be at Saveh, 74 miles south-west of Tehran.
“We are happy to sign one of Renault’s most historical contracts here,” said Thierry Bollore of Renault.
Mansour Moazami, head of Iran’s Industrial Development along with Renovation Organisation (IDRO), said the first phase of the agreement would certainly lead to 150,000 cars a year being produced within 18 months.
Production, initially of its Duster along with Symbol vehicles, will then be ramped up to 300,000 cars per year by 2022.
Renault already makes about 0,000 cars per year in Iran, where the item has been producing vehicles since 2004, side-stepping international trade along with financial sanctions against the country.
Those were imposed by the European Union in 2012 because of Iran’s continued development of facilities to enrich uranium which might be used in nuclear bombs along with missiles.
The sanctions were eased last year, paving the way for the brand-new deal.
“This specific signing confirms our strong intent along with commitment for long-term operations as a strategic partner of Iran’s automotive industry,” said Mr Bollore.
The IDRO will own 20% of the brand-new venture along with Parto Negin Naseh will hold the different 20%.
One element of the deal can be in which 30% of the cars along with parts will go for export.