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Russian firm clinches Euros 2.5 billion Iran rail deal

Russia's CJSC Transmashholding has signed a 2.5 billion euro deal with IDRO Group for joint production of rolling stock in Iran.

Transmashholding is the largest manufacturer of locomotives and rail equipment in Russia. It will hold an 80% stake in the joint venture, taking over Iran's Wagon Pars Company to produce railroad cars in the country.

We are not concluding a purchase or contracting agreement. This partnership rather is likely to last for the next 30 years or be extended even further, Iran's Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh said before the signing of the contract in Tehran Monday.

The joint venture will lead to a 55% localization of rolling stock manufacturing in Iran, putting the country's software, hardware, and internal workforce capabilities into good use, the minister added.

The initial agreement was reached last year, under which Iran is about to import 1,100 freight wagons from Russia and jointly produce another 5,000 units in the Islamic Republic.

Russia's CJSC Transmashholding has signed a 2.5 billion euro deal with IDRO Group for joint production of rolling stock in Iran.

Transmashholding is the largest manufacturer of locomotives and rail equipment in Russia. It will hold an 80% stake in the joint venture, taking over Iran's Wagon Pars Company to produce railroad cars in the country.

We are not concluding a purchase or contracting agreement. This partnership rather is likely to last for the next 30 years or be extended even further, Iran's Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh said before the signing of the contract in Tehran Monday.

The joint venture will lead to a 55% localization of rolling stock manufacturing in Iran, putting the country's software, hardware, and internal workforce capabilities into good use, the minister added.

The initial agreement was reached last year, under which Iran is about to import 1,100 freight wagons from Russia and jointly produce another 5,000 units in the Islamic Republic.

Iran has announced plans to splurge up to $25 billion over the next 10 years in the modernization and expansion of its railway network.

Under its vision plan, the country seeks to stretch out the nationwide railroad line to 25,000 kilometers by 2025 from under 15,000 kilometers now.

Source: Press TV


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