Iran Khodro Industrial Group (IKCO) has announced plans to establish an assembly facility in the Special Economic Zone Authority of Duqm (SEZAD) in Oman, after a meeting between officials.
Laying out a strategy that will ultimately see IKCO develop not just assembly, but production in Oman, Hashem Yeke-Zare, CEO and president of IKCO, noted: “Based on the strategy, the number of our products would reach to three million vehicles for national and international markets.”
According to Saeed Tafazzoli, IKCO deputy for international affairs, the establishment of the site – expected to initially produce 15,000 vehicles each year – will be financed by Oman’s development fund, with IKCO providing the site with engineering services and spare parts.
Citing the historic relations between Iran and Oman, Yeke-Zare also highlighted that the site can provide Iran Khodro with an easy access to markets deep in eastern and northern regions of Africa.
Yahya bin Said bin Abdullah Al Jabri, chairman of SEZAD, meanwhile noted that the Duqm free zone has a high capacity for the potential export of cars to India, Pakistan, Bangladesh and eastern Asia.
He said: “IKCO’s products facilitate our access to Asian markets. On the other hand, Duqm enjoys some appropriate grounds for car production.”
It appears that Oman has been actively courting its historic trade partner, as Tafazzol explained that the heads of Oman’s Development and Investment Fund priorly visited Iran several months ago “to discuss the possibility of establishment a joint venture” to produce IKCO vehicles in Oman.
Speaking of Duqm, Oman’s International Equipment & Contracting Company recently supplied a fleet of 207 of Iveco Trakker trucks to Omani contractor Galfar for use on the new Duqm refinery project.
