(March 06, 2017) – Germany’s Continental, commonly known for its quality tires, has signed a deal with Iran’s Crouse Co. to set up a local auto parts production joint venture.
The two companies will produce injectors, engine management sensors and electronic control units through the JV named Crouse-Continental Automotive Components, ILNA reported at the weekend.
The total investment in the venture will be €18 million, and Continental is committed to put up 45% of the capital.
The company will later expand production to brakes and car audio systems. Tire production has not been highlighted in the deal.
Crouse has incorporated technology transfer as one of the conditions of the joint venture with the Germans. Currently, four engineers from the German company are training their counterparts in Iran. The number of German engineers participating in the project is set to rise to 10 in the coming weeks.
Crouse and Continental have collaborated for 12 years, producing engine parts. According to company statistics, they have produced eight million engines during this period. However, during the sanctions years the German firm halted cooperation.
With revenue of €40 billion in 2016, Continental is the third largest auto parts manufacturer in the world.
Source » financialtribune