Located in southeast Azerbaijan, the industrial district houses a dozen factories including an under construction joint production plant owned by IKCO and Azermash OJSC.
After the inauguration of the zone Aliyev said the Azermash-IKCO joint venture is “a manifestation of Iran-Azerbaijan relations”, the Azeri state news agency reported.
The auto joint venture is the largest company that the industrial district hosts. He said the JV is aimed at reducing the republic’s reliance on auto imports, according to Financial Tribune.
The Azeri president also said that the vehicles produced at the joint company will be exported.
Earlier IKCO export manager, Sabina Nobari, had said “Iran Khodro is set to export vehicles to the Commonwealth of Independent States through its Azeri operations.”
The CIS was born after the disintegration of the former Soviet Union in 1991. Its member states include Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
Iran’s automotive industries have ties with several of these countries and the process was strengthened after President Hassan Rouhani took office in 2013 and said closer ties to neighbors were among his foreign policy priorities.
The joint venture between IKCO and Azermash was created in 2016 and according to Azeri deputy economy minister, Sahil Babayev, $15 million has been allocated for building the factory in Neftchala,
Two weeks ago Babayev said “80% of the plant has been constructed and the first vehicles should roll out in early 2018.”
The plant will have an annual capacity of 10,000 cars and produce four models, namely Dena, Runna, Soren, and Samand and employ 300 people.
IKCO started operations in Azerbaijan in 2005 by launching sales of its locally- designed Samand. In the past decade, 4,500 Iran-made vehicles were sold in that country.