Neftchala. Alibey Zeynalli – APA. A groundbreaking ceremony for construction of a joint Azerbaijani-Iranian car plant was today held in Azerbaijan’s Neftchala industrial quarter. The plant is a joint project of Azerbaijan’s AzEuroCar LLC and Iran’s giant automaker Iran Khodro.
APA’s regional bureau reports that the delegations led by Azerbaijani Minister of Economy Shahin Mustafayev and Iran's Minister of Industries, Mines, and Trade Mohammad-Reza Nematzadeh attended the ceremony.
The plant will be built in an area of 10 hectares. With annual production capacity of 10,000 cars, it will launch 300 jobs. The cost of the project makes $300 million and memorandums of understanding were signed in April. 25% funds will be invested by Iran, 75% by Azerbaijani side. The plant will be launched by 2018.
Minister Shahin Mustafayev noted that the economic cooperation is one of main directions of Azerbaijan-Iran relations: “450 Iranian companies operate in Azerbaijan. Iran invested $2.5 billion in Azerbaijan. Iran is one of Azerbaijan’s main partners. IN January-June, the trade turnover increased 66%”.
Mohammad-Reza Nematzadeh said there is a great potential for development of economic links: “This plant proves it”.
Thereafter, AzEuroCar LLC and Iran Khodro signed 6 contracts. The documents were signed by Head of the AzEuroCar, Emin Akhundov and Director of Iran Khoro Industrial Group Hashem Yeke Zare. The contracts envisage distributor, licence, sale, installation and exploitation of equipments, engineering services, technical support and etc.
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