Vehicle component maker Valeo has signed an agreement for the creation of a joint venture for its engine cooling business with Armco, the leading supplier in Iran and a current Valeo licensee.
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The joint venture, to be 51% owned by Valeo and 49% by Armco, will supply heat exchangers to the fast growing Iranian car industry. In particular, the joint venture will supply products for the Peugeot 405 and 206 already manufactured in Iran, and for the Renault/DaciaLogan that will be produced in the country from 2006.
The joint venture will have one production facility in Saveh near Tehran and will employ around 120 people in 2005.
“This joint venture will benefit from the synergies between the products and technologies of the two partners, and will be able to offer to automakers and the independent aftermarket a complete range of aluminium heat exchangers for the automotive market,” Valeo said in a statement.
