Iran Finalizing Deals with France’s Airbus, Peugeot
TEHRAN (Tasnim) – As Iranian President Hassan Rouhani is on a landmark visit to France, the two countries are taking the final steps to conclude major tie-up deals and export contracts including Tehran’s purchase of dozens of Airbus passenger planes and the construction of a car factory in Iran.
The deals, which are expected to be struck soon, were announced at a Franco-Iranian business forum attended by President Rouhani and a host of ministers and business leaders.
With four business arrangements flagged by France's main industry body including the PSA Peugeot Citroen (PEUP.PA) tie-up and a plan to sell over 100 Airbus (AIR.PA) passenger planes, French Prime Minister Valls said there would also be agreements signed in the areas of health, agriculture and the environment, Reuters reported.
Exactly what stage the Airbus deal was at remained unclear on Thursday, but French officials said Iran was putting the finishing touches to the deal.
Previous comments by the Iranian officials suggested that the country is going to buy 127, mainly new, aircraft, including eight A-380 superjumbo planes to be delivered from 2019, and sixteen A350 jets.
Also for Peugeot, racing to expand outside Europe after a brush with potential bankruptcy, the Iranian factory tie-up is critical.
The company said recently it was counting on Iran for about 400,000 annual vehicle sales by 2020. When it suspended sales in Iran in 2012, it lost nearly 10 percent of global deliveries and interrupted a relationship with Iran that dates back to more than 50 years ago.
Under the deal announced on Thursday, but whose final signature will not be made until the middle of this year, Peugeot and Tehran-based Iran Khodro plan to modernize a factory near Tehran and be producing cars by mid 2017.
The initial production target is 200,000 vehicles a year and the joint venture will make Peugeot 208, 2008 and 301 models with a Peugeot investment of 400 million euros ($436 million) over five years.