Scandinavian supplier association, FKG is flying to Iran tomorrow (16 April) leading a delegation looking to take advantage of what could be a signifiant lifting of economic sanctions.
Tehran has been subject to draconian measures in a bid to halt what some perceive as its drive to enrich uranium for nuclear weapons – a position Iran refutes – but recent breakthrough talks in Switzerland could pave the way for these to be removed as early as this June.
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A group of French component manufacturers through the guise of supplier body, FIEV, has already visited Iran, but this will be the first such trip by Scandinavian companies looking to capitalise on a market ripe for modernisation after years on the economic outskirts.
“The timing is perfect – it was good luck,” FKG managing director, Fredrik Sidahl told just-auto from Gothenburg. “I am really looking forward to this – this could be a real opportunity for the automotive industry.
“Sanctions will be reduced hopefully in the near time.
“We are eight companies, 14 people, its is rather small, but that is good in fact because the main task is to understand, to bring back to Sweden that we recognise in Iran.
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By GlobalData“I call it Go Global one [FKG has already visited Brazil, China and Russia as part of its Go Global initiative], there will be two, three four and five for sure. Don’t be surprised if there will be deals already on this trip – it is a great opportunity.”
The flurry of activity surrounding the country comes as PSA Peugeot Citroen confirmed to just-auto last week it was ready to start working with Iran Khodro (IKCO) to produce vehicles domestically as opposed to its previous CKD shipments, while the Iranian manufacturer is now eyeing further Western cooperation.
IKCO said there were talks between “some other new players” in Europe, with Iran “very, very eager to see new products.”
Despite the undoubted enthusiasm for Western manufacturers to source new business in Iran, some in the US and Israel have expressed reservations surrounding the deal, which was the result of years of painstaking negotiations between the P5+1 (UK, France, US, Germany, China, Russia and the European Union) and Iran in Lausanne.
FKG will visit Iran Khodro and Saipa Diesel before travelling to the free zone of Tabriz, as well as having dinners with Iranian mayors.
“I hope for much better understanding of business in Iran for Swedish companies,” said the FKG chief. “What needs do they [Iran] have and how could that need fit our industry.
“I come back with that knowledge and we have a seminar booked where we take those learnings and bring them forward.”
The P5+1 group maintained a “decisive step” had been taken and solutions on key parameters to the Joint Comprehensive Plan of Action (JCPOA) had been reached in Switzerland.
