Iran Khodro (IKCO) says that it is to establish a production site in Semnan Province (220km east of Tehran) to manufacture 100,000 cars per annum.

Javad Najmeddin, IKCO CEO said that the site would be capable of producing all types of Samand.

Fifty million dollars of the required capital for the project will come from the province allocated budget and the private sector will undertake the rest, IKCO said. IKCO's participation would be limited to providing the required technical knowledge, equipping the production lines and training human resources.

The first phase of the site will enter into operation in nine months and another nine month period is required for the second phase to start.

In what IKCO terms '2025 vision', it is planned that IKCO annual production will exceed 1.5 million cars a year.

In line with the decentralisation policy (pushing the industries out of the capital), IKCO has already started to establish production sites throughout the country.

IKKCO (Iran Khodro Khorassan) was IKCO's first out-of-capital production site, established in Khorassan province (North East of Iran) in 2004. IKKCO production capacity is 150,000 cars a year.

Following that IKCO established Iran Khodro Tabriz in 2007 and Iran Khodro Mazandaran in 2010. The production capacities of these two sites are 100,000 and 15,000 cars per annum respectively.

At the moment, Iran Khodro Fars, with the yearly production capacity of 30,000 cars is operation-ready and the pilot production of Pars sedan will start soon, IKCO said.

Iran Khodro Semnan will be IKCO's 10th production site.