Deals worth €245m to be signed to indigenize industrial equipment

October 27, 2020 - 15:23

TEHRAN – Iranian Industry, Mining, and Trade Ministry is going to set up four domestic production promotion desks in the fields of petrochemicals, refining, auto, and home appliance industries in which deals will be signed for indigenizing €245 million worth of equipment in the said sectors.

Of the mentioned figure, €60 million is related to the petrochemical industry, €80 million is pertaining to the refining industry, €63 million is related to the home appliance industry and €42 million is for the automotive industry.

According to the Iranian Industry, Mining and Trade Ministry data, relying on domestic production has saved Iran €1.045 billion since the implementation of the program in the previous Iranian calendar year (ended on March 19) during which 11 desks had been set up on the matter.

Of the mentioned amount, €140 million has been the share of oil, gas, and petrochemical industries and €120 million has been the share of telecommunications, electricity, and electronics.

Also, the manufacturers of automobile and motorcycle parts and equipment managed to indigenize the knowledge for producing €340 million worth of products, while the steel and copper industry saved €440 million.

As reported, the mentioned program for establishing domestic production promotion desks was defined by the government to supply products, equipment, and machinery needed in various industrial fields using the capacities of the domestic producers and to increase self-sufficiency in the mentioned areas.

Back in August, the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) announced that domestic production of 19,000 parts in the steel sector has saved the country €1.5 billion in 12 years.

Iranian deputy industry, mining, and trade minister for industry affairs also said that the ministry has defined 40 trillion rials (about $952 million) worth of projects to be awarded to the knowledge-based companies for indigenization of the auto industry equipment and machinery.

According to Mehdi Sadeghi Niaraki, aimed at boosting the domestic production of auto parts and equipment, these projects are defined to be implemented by companies and institutes that are on the cutting edge of knowledge and technology.

Back in 2019, when the program started, the Iranian Industry, Mining, and Trade Minister at the time Reza Rahmani had said that relying on domestic production was going to save $10 billion for the country in two years.

In October 2019, Leader of Islamic Revolution Ayatollah Seyed Ali Khamenei said government officials should ban the import of goods that are also produced domestically.

EF/MA

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