Iran Khodro eyes to open more car plants in Azerbaijan
By Nigar Abbasova
Iran’s major car-maker plans to open new plants in neighboring Azerbaijan.
The issue was on agenda of the Azerbaijan-Iran Business Forum in Urmia, where a delegation headed by Minister Shahin Mustafayev arrived in to discuss expansion of cooperation in various areas.
Mustafayev, addressing the event, said that Iran’s giant automaker Iran Khodro plans to open four new plants in Azerbaijan.
In 2016, Azerbaijan’s AzEuroCar LLC and Iran Khodro signed an agreement to create a joint car plant in the Neftchala Industrial Quarter. The plant with a capacity of about 10,000 cars per year will produce four Iranian car brands – Dena, Runna, Soren and Samand.
The cost of the project is estimated at $15 million. The plant is expected to produce its first cars in May 2017. Some 20 percent of the produced cars will be exported. The cars produced at the plant will meet Euro 5 standard.
Mustafayev went on to add that Azerbaijan and Iran intend to increase the bilateral trade to $500 million.
The trade turnover between the countries hit some $15.77 million in January 2017, while the index of last January stands at $9.56 million. In 2016, Azerbaijan’s trade turnover with Iran amounted to $210.76 million, which is 70 percent more than in 2015.
He noted that currently 538 companies with Iranian share operate in Azerbaijan, while these companies have invested about $150 million in the country.
The minister further said that the two countries also plan to increase the number of flights between Baku and the Iranian cities of Tehran, Tabriz and Mashhad.
Currently, the number of flights operated between the countries on a weekly basis is 14.
The tourist flow between the two countries intensified with the introduction of simplified visa regime, which has come into force starting from January 10, 2017. Iranian citizens became eligible to register visas for entry into Azerbaijan via the ASAN Viza system, as a result of which, they got a right to obtain visas within three days.
Since February 2010, Iran unilaterally abolished its visa regime for all citizens of Azerbaijan. The citizens of Azerbaijan can travel to Iran and stay in the country without visa from 15 to 90 days.
Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic relations between the two countries were established in 1992.
Azerbaijani and Iranian peoples enjoy the same cultural and religious traditions. Two countries successfully cooperate in many areas, including agriculture, transport, tourism, industry and other spheres.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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