(HERALD) Tractor firm to get first units from Iran
Tractor firm to get first units from IranBusiness Reporter
THE tractor manufacturing venture between the Industrial Development Corporation, Iran Tractor Manufacturing Company and the Iran Foreign Investment Company is on course with the first tractor units expected in the country soon. IDC’s public relations manager Mr Derrick Sibanda said the three partners were finalising on a few technical aspects ahead of the arrival of the kits from Iran.
"The aspects have more to do with administrative issues relating to the project," he said. The three partners signed a shareholding agreement in March for the joint tractor manufacturing company, Motira, that would produce tractors locally.
Under the shareholders’ agreement, ITMCO owns a 55 percent stake in Motira while IDC has 45 percent although the shareholding would be reviewed at a later stage to take into consideration the country’s empowerment laws.
The signing ceremony facilitated the release of a US$4 million grant from the Iranian Government for the setting-up of the tractor manufacturing business through Motira.
Motira would initially be engaged in the assembly of Massey Ferguson tractors from completely knocked down (ckd) kits from Iran at Willowvale Mazda Motor Industry before venturing into full-scale production that includes the establishment of a foundry plant that would manufacture these kits locally.
Apart from assembling, producing and selling tractors, Motira would also offer after sale service of the whole range of agricultural tractors and implements of the Massey Ferguson brand.
The foundry plant was targeted at producing about 5 000 units per annum, this is in line with the capacity of the WMMI plant.
IDC demonstrated its capability in terms of tractor manufacturing when it assembled about 428 tractors for the Agricultural and Rural Development Authority. The tractor project was expected to increase the production capacity at WMMI, which is operating at 20 percent of its capacity.
Labels: TRACTORISATION
posted by MrK @ 12:38 AM
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