Bosch returns to Iran as suppliers eye upgrade need
Huge pent up demand in Iran fuelling supplier interest
Bosch Group is opening a new liaison office in Tehran and will employ around 50 associates in the Iranian capital by year end.
"We are delighted to be back in Iran," said Bosch Europe, Middle East and Africa board member, Uwe Raschke.
"In our quest to pick up speed quickly, we are benefiting first and foremost from re-establishing contact with former local partners and customers.
"The country's potential is tremendous. We expect to see the Iranian economy grow by just under 5% this year. The medium term is also highly promising."
More than half of Iran's near 80m inhabitants are less than 25 years old and the population is also highly educated. Slightly more than 20% of the country live in the Tehran area, a region with a rapidly developing IT infrastructure.
Bosch estimates the Iranian government plans to invest more than US$40bn in local infrastructure, for example, expanding airports, rail networks and energy supply.
"We can support the country's modernisation process with a wide range of products and solutions, including mechanical engineering applications, solutions for connecting infrastructure and energy and building technology, as well as household appliances and power tools," added Raschke.
Bosch will also be present in Iran with its range of products and solutions from the Mobility Solutions business sector.
This year Bosch says more than 1m vehicles are expected to be produced locally in Iran, some 9% more than last year. The country's outdated fleet also means that the need for investment is high, especially in the commercial-vehicle segment, with many trucks having lready been on Iran's roads for 40 years or more.
In addition to its liaison office in Iran, Bosch has also recently opened a sales office in Lahore, Pakistan's second-largest city.
The activities in Iran and Pakistan as well as in 14 further countries in the Middle East will be coordinated by the regional subsidiary in Turkey.
In 2015, the company generated sales of EUR1.9bn in the region, including Turkey, corresponding to a considerable increase compared to 2014. The company generated sales of nearly EUR1.5bn in Turkey itself last year and employs 16,600 staff.
"Turkey plays a prominent role in our growth strategy in the Middle East," said Raschke.
Within a period of two years (2015 and 2016), the company is investing around EUR0.5bn, mostly in expanding local manufacturing and engineering.
Bosch also opened a new regional headquarters in Istanbul in 2015.