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AMB Iran 2017 Iran optimistic about the future

| Editor: Briggette Jaya

Iran – Technology transfer and training are currently the key topics in Iran's industry. Prior to AMB Iran in May, industry get-togethers in Isfahan, Teheran and Tabriz were set-up recently by the organisers.

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Representatives of Messe Stuttgart and the venue operator Exhibiran International use the opportunity to exchange know-how.
Representatives of Messe Stuttgart and the venue operator Exhibiran International use the opportunity to exchange know-how.
(Source: Messe Stuttgart)

The second AMB Iran will take place in Teheran from 23 - 26 May and is almost fully booked with over 180 exhibitors. Organisers Messe Stuttgart and the German Machine Tool Builders' Association (VDW) recently invited keynote speakers to three industry get-togethers in Iran in the industrial hubs of Isfahan, Teheran and Tabriz.. 600 high-ranking representatives from the politics, industry and industrial associations discussed the current situation following the lifting of the sanctions and new opportunities of the country's industry. Relevant topics include technology transfer from abroad, the potential for foreign investments and the importance of company and on-the-job training.

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Industry in Iran flourishing

Mechanical engineering in Iran is currently experiencing a strong upturn. The numerous planned large projects, expansion investments and the necessary renewal of often very outdated industrial plants offer mechanical engineers huge opportunities. In Iran imports are expected to grow USD20 billion from 2015 to 2017. It is estimated that machines and accessories will account for 20% of this growth.

Iran possesses a well-developed automotive parts industry but there is still a high import requirement. There are around 15,000 production sites in Iran but 60% of the parts required for the automotive industry are still imported. The production capacities of the Iranian automotive manufacturers are roughly 2 million vehicles per year. Modernisation is also needed in the oil industry. In addition, automotive manufacture, the chemicals industry and the expansion of renewable energies are some of the areas in which machines are also required.

Modernisation high, rising interest of foreign companies in Iran

President of the Chamber of Industry and Commerce in Isfahan, Mohammad Reza Barekatain, said that the transfer of knowledge and the intensive exchange with international companies is of immense importance. Iran's participation on the global market and the co-operation with international companies, particularly with those from Europe, will be decisive for successful growth in the coming years. International perception can only be increased when the corresponding installations and facilities are available locally, he added.

Mohammad Reza Modoodi, representative of the exports and foreign trade association (TPO) and government advisor, reported a noticeable upturn in the Iranian economy. For TPO, the latest technology transfer is the starting point from which better production results are possible. The organisation is hoping for higher investments, which would also mean the creation of more jobs.

With the lifting of the sanctions, the demand for modernisation in the industry is now very high. Samad Hassanzadeh, president of the Chamber of Industry and Commerce in Tabriz, estimates that 70% of the machines in the country's factories are German products, making the majority of German exhibitors at AMB Iran very welcome.

Younes Akbarpour Paydar, president of the Association of Automotive Parts and Machine Manufacturers in Tabriz, also reported a long history of joint ventures between German and Iranian companies. According to him, Iran is an attractive location for metal working for two reasons – the expected capacities are high and the production costs are appropriate for the Middle East.

Mohammad Zeinalipour, a business development representative in the Chamber of Industry and Commerce in Isfahan, talked about the rising interest of European companies in the Iranian market. He noted that while technology transfer is important, it will not be able to solve all industrial problems in the country. Nevertheless, strong support for training and specific technical training courses are important for the future.

President of the Association for Mechanical and Plant Engineering, Trucks and Suppliers in Isfahan, Akbar Ashurion emphasised that training is top priority and that a joint venture between associations is desirable as well as the promotion of a university exchange between Iran and Germany.

Iran is said to be the leading importer of electrical and automation technology in the Middle East. At the industry get-together in Teheran, Jürgen Engert, vice resident of Siemens S.S.K., the Iranian subsidiary of Siemens AG, delivered a keynote speech focussing on automation. Siemens S.S.K. will showcase products in the automation Iran pavilion at AMB Iran.

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