Faurecia SA, a France-based automotive equipment supplier, has set up two new joint ventures in Iran in an attempt to strengthen its industrial presence in the Islamic Republic following a lasting nuclear deal between Tehran and world powers.
Emissions control systems will be developed and produced for the Iranian market under a 50-50 joint venture between Maadiran — a leading industrial automation and control engineering company — and Faurecia, Reuters reported on Friday.
Total sales of the first venture are expected to reach €50 million in 2020, the report added.
The second venture has been formed between Azin Khodro — a major Iranian automotive parts manufacturer — and Faurecia for vehicle interior systems. Its total sales is expected to reach €50 million in 2020.
Iran's automotive industry is the second largest in the country after its oil and gas industry, accounting for 10 percent of the country's GDP.
Experts believe that Iran's economic growth is rising following the removal of anti-Tehran sanctions.
The sanctions were removed after Tehran and the P5+1 (Russia, China, the US, Britain, France and Germany) finalized the lasting nuclear deal on July 14, 2015 which went into the implementation mode on January 16, 2016.
