TEHRAN - The spokesman of Iran’s Home Appliances Manufacturers Union said 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 on Monday.

“The sanctions not only have failed to curb production, but they have also created unique opportunities for this industry,” Qaznavi said.

The official noted that before the sanctions, foreign companies held more than 60 percent of the country's home appliance market, which had significantly weakened domestic industries and created serious employment problems.

He further mentioned some of the problems that the producers are facing in this industry, saying: “The main problem of the production sector these days, despite all the efforts of the Central Bank, is the supply and allocation of foreign currency, and if this issue is resolved the employment problems will also be solved.”

Following the re-imposition of the U.S. sanctions, most of the major international home appliance manufacturers – mainly Asian brands – that were enjoying Iran’s 80-million market suddenly gave in to the U.S. pressures and left Iran.

This has created a good opportunity for domestic companies to take over. In this regard, domestic home appliance manufacturers started a new movement to push for more production on one hand and to indigenize the knowledge for producing high-tech components and parts used in this industry, on the other hand, to cut off reliance on foreign sources.

According to the data released by Industry, Mining and Trade Ministry, manufacturing of washing machines in Iran increased 58.2 percent during the first eight months of the current Iranian calendar year (March 20-November 20), compared to the same period of time in the past year, while the production of refrigerators and freezers increased by 29.2 percent.

The production of other products like television sets, air conditioners, water air coolers, stoves and etc. have also increased.

EF/MA