Qazvin Industrial Areas Attracting More Investments

EghtesadOnline: An average annual of 400 billion rials ($1.6 million) worth of infrastructural investments has been allocated to Qazvin Province’s industrial areas every year since 2013 when President Hassan Rouhani first came to office, according to the CEO of Qazvin Industrial Parks Company.

News ID: ۷۵۰۸۷۷

03 September 2020

“This year, the figure has experienced a significant rise and reached 1 trillion rials ($4.5 million). These investments by the government will be used for the construction of roads, asphalting the existing routes, expanding electricity, lighting and telecommunications in the area, building wastewater treatment facilities, water transfer network and creating green areas so we can attract more investors to the province,” Hamidreza Khanpour was also quoted as saying by IRNA.

The official added that so far this year, 15 new production units have been launched in Qazvin’s industrial parks and zones, in which a total of 1 trillion rials ($4.5 million) have been invested.

“These units are active in the fields of automotive spare parts, cosmetics and toiletries, polyethylene as well as laminated films, MDFs, cakes and wafers,” he said.

Khanpour noted that since the beginning of the current Iranian year on March 20, Qazvin Industrial Parks Company has attracted 86 new investors—two times more than the year-on-year figure.

“It is estimated that 8 trillion rials [$33 million] worth of investments will be made in the projects proposed by these new businesspeople and create around 1,860 jobs,” he added.

Qazvin is located in central Iran and has one industrial town, 13 industrial parks and six industrial zones.

A total of €470 million worth of investments by 17 foreign entities have been made in Qazvin Industrial Towns since their establishment, the same official said recently.

In an interview with IRNA, the official noted that foreign investors included those from Germany, France, Poland, Italy, South Korea, India, Turkey, Iraq, Afghanistan and Pakistan.

"These investments have generated 1,869 direct employments in Qazvin," he said.

Turkish Investment Comes to Fruition

AGT Company’s factory, in which the Turkish side has invested a total of €40 million, was launched last month in Qazvin Province’s Caspian Industrial Zone.

The company is a producer of engineering woods such as MDFs, MF-MDFs, panels, profiles, parquets and different types of floorings.

The new factory has created 150 jobs for the locals and aims to meet part of the Iranian market demand while providing a platform for exports to neighboring countries.

Director General of Turkish company AGT Sirzat Subasi and the head of Qazvin Industrial Parks Company, Hamidreza Khanpour, signed a memorandum of understanding in June 2017 for the Turkish side to invest in the building of this factory. Back then, the volume of investment was estimated to be €70 million.

"This is the second largest foreign investment made in Qazvin in 2017 and that's why it's important to us. Moreover, it is the first investment made by AGT in a foreign country, making it significant for them," Khanpour told Financial Tribune at the time.

Established in 1984 in Antalya, AGT is active in the construction industry with its production of flooring, door, wall panels and baseboard, and in the furniture and decoration sector with its production of MDF, MDF-LAM panel and profile. It has more than 1,000 employees and over 1,000 sales outlets in five continents.

"The Turkish company has a 60% share in the Iranian market for these products [engineered wood]. Therefore, in order to retain their market in Iran and reduce costs, they have decided to construct a factory in the country. Qazvin was chosen due to its strategic location and its proximity with the capital, Tehran. The availability of required infrastructure was also taken into account in selecting the factory's location," Khanpour said.

$30m in Chinese Investment for Production of Tiles, Ceramic

Chinese businessmen are investing $30 million to produce ceramic and tiles in Qazvin's Khorramdasht Industrial Town, Deputy Governor General of the Iranian province, Isa Qobadi, said earlier this year.

The official made the announcement after holding a meeting with a Chinese delegation in Qazvin on Saturday.

"Considering Qazvin's proximity to mines, investment in ceramic and tiles can be a good opportunity," he said.

Qobadi noted that there is mutual trust between Iran and China, and that Chinese investors are not concerned about investing in Iran.

Indian Investment in Home Appliance Production

Last year, an Indian company manufacturing various brands of home appliances said it planned to make investments in Qazvin Province for the establishment of a production line.

Representatives of the Indian company held talks with provincial officials in Qazvin, Mehr News Agency reported, without mentioning the name of the Indian company.

As for the reason behind selecting Qazvin Province from among other Iranian provinces for investment, the Indian side said, “As compared to Tehran, Qazvin enjoys high potentials and capacities for investment activities. Our company will start production in Qazvin in 2020 and all state-of-the-art technologies for manufacturing home appliances will be transferred to this province within five years.”

Given the US sanctions and in the absence of two famous South Korean brands of home appliances in Iranian market, namely Samsung and LG, a suitable opportunity has been created in Iran for investment, the Indian side said.

The two South Korean brands had long dominated Iran's home appliance market prior to the latest round of US sanctions.

The Indian company started manufacturing home appliances’ parts and equipment in 2004 for the two South Korean companies, but the company embarked on producing these parts for its own brand in 2012.

Once sanctions imposed on Iran are lifted, Iran will get the lion’s share of the whole Central Asian markets, according to the Indian side, adding that in the first phase of this project, the company will manufacture refrigerators, LCD TVs and washing machines in Qazvin Province.

Later, a delegation of foreign businesswomen and female entrepreneurs from Armenia and Russia were briefed about the economic capacities of Qazvin Province in a meeting.

“The meeting was held at Qazvin Chamber of Commerce, where the 30-member delegation discussed economic capacities and opportunities with Iranian private sector operatives,” Fatemeh Ghafouri, the head of Qazvin’s Businesswomen Association, told Mehr News Agency.