Bosal has taken a majority share in a joint venture with the Iranian industrial conglomerate Fouman Chimie. Fouman Chimie is a leading supplier of chemicals and catalytic converters, with an annual turnover in excess of $180 million.
The joint venture will have a production capacity of more than 500,000 systems per year, with OEM and aftermarket supplies scheduled for the Renault L90 (Logan) and the Iran Khodro Samand (Iranian national car project).
Manufacturing of exhaust systems will start in May next year. Initially, production will take place in a rented facility while a new 8,000 m2 manufacturing facility is built on a 30,000 m² greenfield site outside Teheran.
Construction of the facility, which will create more than 200 new jobs, is due to start late in 2006.
Karel Bos, CEO, Bosal Group, said: “We see Iran as one of the fastest growing auto markets of the world, with the economy growing at more than 6% per annum. We are confident that we have established a strong, effective and secure joint venture with Fouman Chimie to supply major customers in the region.”
Total investment by the Bosal Group will be approximately $10 million. The plant will be run by Bosal management.