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September 20, 2016

Azerbaijan and Iran, the two neighbor countries are currently considering the issue of implementing a number of joint projects and expanding bilateral ties.

Iranian ambassador to Azerbaijan, Mohsen Pak Ayeen said that the Azerbaijani-Iranian automobile plant is planned to be constructed by May 2017, mentioning that construction operations are being carried out successfully.

Pak Ayeen, who will soon complete his diplomatic mission in the country, made the remark while addressing the Azerbaijan-Iran business forum on September 20.

“I hope the plant will be constructed in time – before May 2017,” he said.

A groundbreaking ceremony for the Azerbaijani-Iranian car plant was held in Azerbaijan’s Neftchala industrial district in August 2016.

The total cost of the plant is $15 million, while some 25 percent of the cost will be provided by the Iranian side. The plant, which is a joint project of Azerbaijan’s AzEuroCar LLC and Iran’s giant automaker, Iran Khodro, will cover an area of 10 hectares.

The plant is expected to provide jobs for 300 people at the first stage, with the further increase up to 500. Twenty percent of the produced cars will be exported. The cars produced at the plant will meet Euro 5 standard. Four Iranian car brands – Dena, Runna, Soren and Samand will be produced at the new plant, which will have a capacity of 10,000 cars a year. The project is being implemented on the basis of a memorandum of understanding signed in April.

The incumbent ambassador also said Iranian companies are planning to build a pharmaceutical plant in Azerbaijan’s Pirallahi settlement.

The Iranian side is currently in talks with Azerbaijan’s Azərsun Holding Company.

Pak Ayeen noted that the plant will be constructed in three stages.

“The necessary medicines will be imported from Iran to Azerbaijan within the first stage, while Iran will provide all necessary technology for the production of drugs in the second stage of the project,” he clarified.

Moreover, Azerbaijani Matanat-A Company, one of the leaders for construction materials production in the country, is planning to build a plant for production of gypsum in Iran.

Jafar Sarghini, Iran’s deputy industry minister for mining and mineral industry said the Azerbaijani company has already obtained a license to operate in Iran.

The trade turnover between Azerbaijan and Iran amounted to $105.7 million in January-July 2016, more than $77 million of which accounted for imports from Iran, according to Azerbaijan’s State Customs Committee. Azerbaijan’s exports to Iran almost doubled to $14.4 million in the first quarter of 2016, while imports increased from $19.4 million in 2015 to $27 million in 2016.

Azernews

About Track Persia

Track PersiaTrack Persia is a Platform run by dedicated analysts who spend much of their time researching the Middle East, in due process we fall upon many indications of growing expansionary ambitions on the part of Iran in the MENA region and the wider Islamic world. These ambitions commonly increase tensions and undermine stability.