By Abdul Kerimkhanov
The joint Iranian-Azerbaijani automobile plant AzerMash-IKCO will start producing Peugeot cars in the Neftchala industrial park near Baku in mid-February, said AzerMash Chairman of Board Emin Akhundov, Iranian media reported.
New cars called "Khazar Peugeot" will be equipped with an automatic transmission.
AzerMash-IKCO, with an annual production of 10,000 vehicles, will produce 6,000 vehicles at the first stage, by the end of 2019. The enterprise is expected to export 2,000 vehicles annually. The company will employ 300 people.
At the initial stage, two models of the Khazar car, Khazar SD and Khazar LD, will be released, Akhundov said, adding that the base price for Khazar SD is 16,000 manats ($ 9,384), and for Khazar LD "- 18,000 manats ($ 10,557).
"Iran Khodro" and a subsidiary of AzerMash LLC, AzEuroCar, signed an agreement on the creation of a joint car factory in the Neftchala industrial park on August 6, 2016. The total cost of the project is estimated at $ 14.08 million. Azerbaijan has invested 75 percent of the funds, and Iran - 25 percent.
Diplomatic relations between Iran and Azerbaijan were established on March 12, 1992.
Azerbaijan’s trade turnover with Iran amounted to $395.1 million in January-November 2018, according to the Azerbaijani State Customs Committee.
Iran and Azerbaijan successfully cooperate in all spheres - political, economic, cultural, energy, transport.
Iran's investment in Azerbaijan reached $ 3.1 billion. There are more than 700 companies with Iranian investments in various sectors in Azerbaijan. The functioning of the Intergovernmental Joint Commission gives a special impetus to the development of relations.
Iranian companies successfully operate in Azerbaijan. Two countries cooperate within the Joint Car Production Plant at Neftchala Industrial Zone, Joint Pharmaceutical Plant in Pirallahi Industrial Park, Hydro Power Plants in the Energy Sector "Khudaferin / Maiden Tower".
Expansion of cooperation between Azerbaijani port of Alat and Iranian ports of Anzali and Amirabad is crucial in terms of development of transport and transit relations between two countries.
Cooperation between Azerbaijan and Iran in the field of telecommunications and postal cooperation, cyber security, space industry, Iranian use of satellite resources, mobile communications and internet services is on the agenda.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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