Home appliance manufacturing to post a record high

February 3, 2021 - 12:32

TEHRAN- The manufacturing of home appliances will hit a record high in the current Iranian calendar year (ends on March 20), according to an official with the Ministry of Industry, Mining and Trade.

Keyvan Gardan, the director for the electrical and metals industries and home appliances office of the ministry, said that according to the plans and the efforts made, despite the continuation of sanctions and the coronavirus pandemic, this year the record of home appliance production will be broken after the victory of the Islamic Revolution (1979).

Making the remarks in a Wednesday meeting of industry owners with the directors of the Ministry of Industry, Mining and Trade in the field of formulating the strategy of Iran's home appliance industry on the horizon of 1404 (March 2025-March 2026), the official added, “Production was projected to grow by 30 percent this year, reaching a record of 12 million sets of home appliances, but the target was realized by the end of the tenth month (January 19)”.

Despite all the sanctions and problems, this industry has been able to continue to grow decisively in the past two and a half years, he said, adding, “Of course, with the ban imposed on the import of home appliances, the people also cooperated and supported this industry, which led to its growth.”

He pointed to the $37-billion home appliance market of the neighboring countries and the region and the $5-billion domestic market capacity and said, "We are trying to allocate more of this market to our country by providing conditions.”

Two months ago, the secretary of the Association of Industries of Household Appliances of Iran said that domestic production of equipment and parts used in the home appliance industry has saved Iran $220 million.

Currently, Iranian producers have indigenized the knowledge for manufacturing 70-75 percent of the country’s home appliance needs, Abbas Hashemi said in a press conference in late December.

According to Hashemi, the Association of Industries of Household Appliances of Iran has established a parts manufacturing department, the purpose of which is to promote the position of component makers in the association to deepen domestic manufacturing of the required parts and equipment in this industry while providing a platform for home appliance manufacturers and component makers to stay connected.

The official noted that the country has managed to export up to $250 million of home appliances in the previous years and currently, the production and assembly lines for Iranian home appliances have been set up in some of the countries in the region and Iran is exporting its products to the target markets by sending Completely Knocked Down (CKD) kits to the mentioned production lines.

Iran has various comparative advantages in this industry in terms of supplying raw materials such as steel sheets, petrochemicals, copper and brass sections, the abundance and low costs of energy and workforce in addition to the strategic position of the country, compared to other countries in the region, he said.

“So, the development of exports to countries in the region and to the neighboring countries is possible even despite the strong regional competitors,” Hashemi added.

In recent years, the Iranian government has been following a new strategy for supporting domestic production to neutralize the impacts of the U.S. sanctions while reducing the reliance of the economy on oil revenues.

The home appliances sector has not been an exemption and like many other areas, the production of home appliances has witnessed a significant rise in the past two years so that in the previous calendar year 1398 (ended on March 19, 2020) this industry’s production capacity increased by 10 percent compared to the preceding year.

As stated by the spokesman of the Association of Industries of Household Appliances of Iran, with foreign companies leaving the country’s home appliance market the production of domestic companies has increased and the unemployment rate in this sector has significantly declined.

While it was expected that the home appliance industry, like some other industries, would suffer from the effects of the coronavirus pandemic and the U.S. sanctions, the inauguration of several new projects in this industry showed that the industry is expanding strongly and moving forward, Hamidreza Qaznavi said in late December, 2020.


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