(MENAFN- Muscat Daily) Carmaker Iran Khodro Industrial Group (IKCO) is considering setting up a production plant in Oman targeting a market which stretches into Africa.
According to Iranian media reports Oman made the proposal for the plant during IKCO CEO Hashem Yekke-Zare's meeting with Hassan Ahmed al Nabhani chief executive officer Oman Investment Fund in Tehran.
'If the plan proves to be economically viable and necessary investment is made Iran Khodro would like to establish a production site in Oman and supply regional markets' the reports quoted Yekke-Zare as saying.
The plan is for semi-knocked-down (SKD) production of 20000 cars a year with 5000 units intended for Oman and the remaining 15000 for neighbouring markets in Yemen Sudan Ethiopia Eritrea and elsewhere.
Iran Khodro would provide all engineering services and technology and is looking for financing by Oman. Ali Alami deputy head for exports IKCO said the plan which needs a US$100mn investment would also help generate jobs in Oman. Automotive industry is the second most active in Iran after oil and gas.
The country has developed its domestic car industry over five decades. The company has been producing French branded cars with the Samand sedan having a ubiquitous presence not only on the streets in Iran but also in Iraq Syria and Azerbaijan.
State-owned Oman Investment Fund recently bought 40 per cent stake in Italian thermoplastic parts supplier Sigit SpA. The move was part of efforts to speed up the process of setting up an auto parts manufacturing industry in the sultanate.
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