Off the wire
• Kenya flies home 30 more injured soldiers in Somalia attack  • French FM outlines action plan for Paris climate agreement  • NATO chief discusses preparations for Warsaw Summit with Polish president  • Mozambican gov't on alert over opposition's alleged military recruitment  • Express train trapped on bridge for 2 hours by high wind in western Japan  • FAO publishes guidelines to better grow food crops while preserving ecosystems  • 3 missing Americans in Baghdad kidnapped from brothel  • Spotlight: French President unveils urgent measures to lower long-running rise in unemployment  • Feature: Chinese built dual carriage way create new jobs for Kenyans  • Feature: China's Tianjin Art Troupe enthralls Bangladeshis, enhances cultural ties  
You are here: 　 Home

German companies return to Iran after sanctions lifted

Xinhua, January 18, 2016 Adjust font size:

German companies started their plans to return to Iran for business after economic sanctions against the Middle Eastern country were lifted over the weekend.

Daimler Trucks announced on Monday it had signed letters of intent with local partners Iran Khodro Diesel (IKD) and Mammut Group, starting a process for "a comprehensive re-entry into the Iranian market."

A joint venture for the local production of Mercedes-Benz trucks and power train components, as well as a sales office for Mercedes-Benz trucks and components would be established in Iran, the Stuttgart-based company said in a statement.

Daimler and its partners were also looking at establishing a joint venture in Iran to sell Mercedes-Benz commercial vehicles.

In the first quarter of 2016, the company intends to open a representative office in Tehran.

"Daimler commercial vehicles have always had an excellent reputation in Iran. And right now, there is a huge demand for commercial vehicles, especially trucks. We will quickly resume our business activities in the market," said Wolfgang Bernhard, head of Daimler Trucks.

The announcement followed decisions by the United States and the European Union to lift economic sanctions against Iran on Saturday after the country started to implement an international deal reached in July 2015 to restrict its nuclear program.

Earlier this month, Siemens signed a letter of intent to improve Iran's railway infrastructure once sanctions were lifted.

The Association of German Chambers of Commerce and Industry (DIHK) said on Monday that the need for modernization in Iran offers great opportunities for the German economy. German exports to Iran were expected to grow to 5.0 billion euros (about 5.45 billion U.S. dollars) in the medium term and 10 billion euros in the long term.

In 2014, German exports to Iran amounted to 2.4 billion euros, while in 2005, a year before sanctions were imposed on Iran due to its nuclear program, German exports to the country stood at 4.4 billion euros.

"German companies lost important market share in Iran in recent years," said DIHK's foreign trade director Volker Treier, "We now must revive German-Iranian economic relations quickly."

According to DIHK, German companies in sectors such as automobile, mechanical engineering, environment technology, agriculture and health care will benefit the most from the Iranian market.

German mechanical engineering association VDMA said earlier it planned to open an office in Tehran in the first half of 2016 to help German machinery and equipment manufacturers sell products in Iran. Endit