The plant has been set up jointly by the Belgians and Iran’s Industrial Development and Renovation Organization as part of an 80/20 joint venture.
Present at the inauguration was Punch Powertrain CEO Cor van Otterloo and the Belgian Ambassador Francois Delhaye, the local automotive website Akhbar Khodro reported.
“Punch Powertrain is delighted and proud about the start of the legal entity (business) and opening of the factory in Iran,” van Otterloo told the Financial Tribune via email.
This inauguration fits perfectly into the strategy of Punch Powertrain to be a global player in the automotive industry, he said.
“We strongly believe that the automotive industry in Iran will experience strong growth in the coming years. Local auto part makers will help in providing parts for manufacturing CVT gearboxes, and international standards will be incorporated in Iranian auto production.”
van Otterloo added that 160,000 automatic gearboxes would be manufactured in the first phase and reach 500,000 units in the final phase.
Noting that cooperation with Iran will not be limited to CVT transmission technology, the Belgian was of the opinion that there is great potential for launching hybrid and electric vehicles in Iran.
“There is a critical need for automatic and low fuel consumption transmissions in Iran and in other countries. We are the first local company to fulfill exactly this need.”
He said his company intends to “bring hybrid and EV technology into the country to reduce air pollution and help ensure a better quality of life.”
Punch Powertrain is an independent full-system supplier of fuel-efficient transmissions with bases in Belgium and the Netherlands.