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Azerbaijan, Iran break ground on joint bus and truck plant

Source: Xinhua| 2019-04-20 02:24:48|Editor: Mu Xuequan
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BAKU, April 19 (Xinhua) -- Azerbaijan and Iran on Friday laid a foundation stone for a joint plant that will manufacture buses and trucks in the eastern Azerbaijani district of Hajigabul, according to the state-run news agency AZERTAC.

The facility will be built in the territory of an industrial hub in the district. Total investment in the plant is estimated at 10 million euros (about 11.2 million U.S. dollars). Azerbaijani automobile manufacturer Azermash and Iranian Kartal Az own 25 percent and 75 percent shares respectively in the project.

The groundbreaking ceremony was attended by Azerbaijani Economy Minister Shahin Mustafayev and Iranian Minister of Industry, Mine and Trade Reza Rahmani.

According to Azermash, 6 million euros will initially be invested in the project. The plant will produce 500 buses and trucks per year at the first stage, while the second phase will see the annual production reach 1,000 vehicles.

Special equipment delivered from Sweden, Germany, Turkey and Iran will be used in the plant.

Azermash said that the price of a bus will vary from 135,000 to 200,000 euros depending on the configuration, while trucks will cost between 70,000 and 90,000 euros. The buses and trucks will be exported to CIS, Central Asia, Pakistan and Iran, the company said.

In 2016, Azerbaijan and Iran signed an agreement to build a joint automobile plant in Azerbaijan's Neftchala Industrial Park. The plant launched the production of first cars last April.

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