TEHRAN, Aug. 07 (MNA) – IDRO of Iran and France’s Renault signed a joint cooperation agreement on Monday morning in Tehran to develop and produce modern automobiles.

The joint venture contract was sealed between Industrial Development & Renovation Organization of Iran (IDRO) and Groupe Renault, a French multinational automobile manufacturer. The agreement-signing ceremony was attended by Iranian Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh, IDRO Head Mansour Moazemi as well as senior directors of the French firm.

Under the terms of the contract, a new car manufacturing plant will be construct with Iran and Renault owning 60 and 40 per cent of the stakes respectively. Iran’s stakes will be equally shared between IDRO and a private Iranian holding each.

In each of the first two phases of the joint venture, a total of 150,000 new Renault Duster and Symbol vehicles will be manufactured. Presently, the two cars are in final designing stages.

Renault has agreed to make an investment of approximately 660 million euros in Phase 1 of the contract and the first production is expected to enter the market by the end of the coming year.

Meanwhile, the second phase is to begin in 2019 and last for three years though its details are yet to be finalized since new products are scheduled to be manufactured and marketed.

Speaking at the signing ceremony, Iran’s Nematzadeh said the contract also features launch of a Renault engineering center as well as construction of an independent engine production line.

He recalled that the Iranian government had been seeking to boost international cooperation with credible firms, like Renault, in line with increasing foreign trade capabilities and entering the international value chain. Iran’s industry minister underlined that over 200 partnerships had been formed over the past four years many of which had reached final production phase.

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