After Total last month sealed a major contract to invest in the $4.8bn development of Phase 11 of the South Pars gas field (MEES, 7 July), another French national champion, Groupe Renault, on 7 August signed a JV deal to set up car manufacturing plant in Iran.
The plant worth €660mn will produce 150,000 cars annually from 2018. It has been under negotiations for some 10 months, following the lifting of international sanctions in January 2016. The new plant will augment Renault’s existing 200,000 vehicle production capacity in Iran. Under the deal Renault will hold 60% of the JV’s shares, 20% will be owned by existing (private sector) local partner Negin Khodro and 20% by the state’s Industrial Development and Renovation Organization (IDRO). A plant will be established in Saveh, a Tehran suburb, to produce Duster and Symbol cars, alongside an R&D center. The deal is expected to create about 3,000 jobs. Renault is obliged to export 30% of the manufactured vehicles. (CONTINUED - 183 WORDS)
