Development Vision of Iran-Bavaria Industrial Relations

Transcription

1 Development Vision of Iran-Bavaria Industrial Relations Mansour Moazami Deputy Minister of Industry, Mine and Trade & Chairman of the Board, Industrial Development and Renovation Organization (IDRO) 1

2 Introduction Ø Islamic Republic of Iran has a population of about 80 million people, most of whom are youngand educated. Nearly 50 percent of the Iranian populationis under 30 years old. Ø The Islamic Republic of Iran neighbors 15 countries in the region, reaching out to a market of 300 million consumers. Ø With a population of 80 million on the other hand, Germany has a privileged position in Europe and the world. Ø the volume of economic relations between the two nations during the sanctions era was limited to about 2.5 billion euros, whereas it amounted to over 5 billion euros prior to enforcement of sanctions. Ø The new grounds provided after the nuclear deal between Iran and the world powers have been facilitating the expansion of economic relations in all sectors. Ø TheIslamic Republicof Iran has declared its readiness to strengthen and develop economic ties between Iran and Germany. Thestarting point can bethe MoUs signed mutually by Iran and Bavarian UnionofEconomyand Industries. 2

3 IDRO is currently undertaking several key missions Ø Implementation of mega development projects aimed at accelerating South Pars gas field in the course of national industrial development, creating productive jobs, wealth generation and expansion of gas production through establishment of Industrial Projects Management of Iran (IPMI). 3

4 IDRO is currently undertaking several key missions Ø Policy-making and steering the automotive industry in subsidiaries (Iran Khodro and Saipa) in order to increase production volume and realize more economical production,upgraded technology,productsand quality. 4

5 IDRO is currently undertaking several key missions Ø Utilization of the capabilities and talents of native professionals by enforcing appropriate protectionist and supervisory policies aimed at promotion of the shipbuilding industry, large-scale establishment and management of Iran Ship Building and Offshore Industries Complex Co. (ISOICO). 5

6 IDRO is currently undertaking several key missions Ø Construction of parent infrastructure industries as the driving force of other industries, particularly in the field of constructing equipment and machinery, including various lathes, drill bits, millers, CNCs, flat stones and all kinds of sharpening machines, tools, etc. 6

7 IDRO is currently undertaking several key missions Ø Building the essential infrastructure for promoting the high-tech industries and supporting selected industries based on modern technology. 7

8 IDRO is currently undertaking several key missions Ø Planning for the identification of investment capabilities and industrial development across the less-privileged areas through the participation and feedback of natural and legal investors from the private sector and implementation of collaborative projects. 8

9 IDRO is currently undertaking several key missions Ø Modernization and renovation of certain projects and industries aimed at realizing great profitability of companies, enhancing the efficiency of production factors, improvement of quality and quantity. 9

10 IDRO is currently undertaking several key missions Ø Establishment and operationalization of special economic zones to build on international business connections, mobilization of the regional economy and encouraging domestic and foreign investment. 10

11 IDRO is currently undertaking several key missions Ø Hiring and training of world-class managerial staff dedicated to industrial units, developing and strengthening of scientific knowledge, promoting the capabilities of managers through an IDRO subsidiary known as Industrial Management of Iran (IMI). 11

12 IDRO is currently undertaking several key missions Ø In implementation of major industrial projects, IDRO has so far taken huge steps toward expansion of Iranian industries, marking numerous milestones in the history of the Iranian industrial development. Ø Over the post-sanctions era, IDRO has been pioneering in the development of industrial negotiations and relations given its inherent mission. In this respect, close ties have been established with the German economic delegates. 12

13 Objectives of negotiation and cooperation strategies The key objectives pursued by the Islamic Republic of Iran for the economic negotiations: ü Absorbing foreign investment; ü Joint venture; ü Co-production; ü Know-how transfer; ü and management development. 13

14 Objectives of negotiation and cooperation strategies Ø The Islamic Republic of Iran can cooperate with Germany in co-production of vehicle engines. In its Auto Strategic Document, IDRO has targeted the annual manufacturing of 3 million vehicles. Iran is currently manufacturing buses and trucks under licenses obtained from Mercedes-Benz, Scania and Volvo. These models are capable of using German engines so long as they are manufactured inside Iran. The Islamic Republic of Iran is highly capable of manufacturing auto parts, totally prepared to deliver parts for three million vehicles a year. This can be realized through a joint venture. Ø For public transportation, Iran needs to manufacturebuses fueled by CNG-based engines. Bavaria houses several large companies and industries where global companies such as Siemens, Audi and BMW are part of the operating industries. In this regard, IDRO can organize joint activities underthose brands. Ø All interested German companies can collaborate with Iranian automakers through J.V (50-50) for manufacturing and sale purposes within the Iranian domestic and foreign markets. 14

15 IDRO s priorities and areas of industrial cooperation Common grounds for cooperation: Ø The transportation industries include automotive (common car platform, powertrain, developing new technologies for features to be installed in vehicles, tire manufacture) maritime (manufacturing/repair of widebody ships, oil tankers, gas carriers and small vessels, construction/maintenance of offshore drilling rigs and Marine Industry Park project in Persian Gulf Shipbuilding Special Economic Zone) railway and completion of railway industry chains based on modern technologies. Ø Oil, gas and petrochemical industries (equipment manufacturing plants, downstream and upstream industries, development of oil and gas fields, refinery and petrochemical plants such as gas-to-propylene (GTP) and mini refinery based on advanced technologies) and development of new industries through advanced technologies. 15

16 IDRO s priorities and areas of industrial cooperation Common grounds for cooperation: Ø It should be noted that qualified companies in Iran should contribute as partners of credible foreign companies to the enforcement of new contracts through Exploration and Production (E&P) under the Iranian Petroleum Contract (IPC). Ø IDRO has been selected by the Iranian Ministry of Petroleum as one of the eight prestigious companies in the field of exploration, production and investment in the energy industries. In addition to accelerating the absorption of foreign participation and investment in joint gas fields, such contracts will pursue the systematic transfer of new technologies to the Iranian oil and gas industry as well as to enable the domestic sector of the petroleum industry. 16

17 IDRO Industrial Diplomacy Ø The key mission of IDRO as a development organization involves prospects for cooperation between domestic and foreign companies. Any expansion in foreign investment can be an achievement setting the grounds for the Iranian industrial development. Ø IDRO s mission involves strengthening the participation of foreign investors, utilization of capacity and resources of foreign companies in line with target industries (oil, gas and petrochemicals; transportation and high-tech industries), know-how steering and transfer into the country and dissemination of technology serving to promote the domestic industries. Ø IDRO has been making great efforts to protect investors and encourage the engagement of foreign capital into the target industry areas outlined by IDRO. 17

18 IDRO Industrial Diplomacy Ø IDRO s priorities revolves around connecting target industries to the global value chain and to help develop the international market for private sector companies in the country and facilitate the exchange of goods, technology and financial resources between domestic and foreign companies though proactive adoption of industrial diplomacy. Ø Undoubtedly, enhancement in the implementation capability of Iranian mega projects will serve to promote the utilization of equipment supply industries, investment in large industrial plants and networking among the collaborating companies. Ø As the proper grounds are provided for cooperation with international companies and business markets are created, there will be opportunities to attract foreign investment. This in turn can strengthen the domestic capabilities and expertise, while setting the grounds for absorption of modern technology, growth of various industries and increasing employment. 18

19 A few strategic suggestions 1- Apparently, there have been numerous MOUs signed so far between IDRO and reputable large companies, particularly in Germany and Bavaria. At the moment, it is critical to enforce the agreements, conclude new contracts, register joint venture companies and initiate joint projects. Hence, I would like to suggest that provisions be complied by diligently as the plenipotentiary representatives of both parties are introduced prior to putting the projects onto stream. 2- The success of Bavarian companies in Iran can set a good example for other German states aimed at consolidating the bilateral economic activities. 3- The industrial capabilities of Bavaria differentiating it from other German states have prompted the Islamic Republic of Iran to embrace further effective cooperation. Administering over a wide range of major industries, IDRO is willing to sign effective partnership agreements with the German parties through joint ventures based upon mutual trust, interests and profits. 19

20 A few strategic suggestions 4- The intensive participation of German banks and insurance companies in the financing of Iranian companies and industries can be promising for opening new windows to the tightened Iranian financial system as a result of unjust sanctions. 5- According to the Iranian general policies, IDRO is unable to leave the domestic market solely to the import of foreign goods. We have rather crystallized our policy upon joint ventures. I hope the Bavarian-IDRO Cooperation Office will set out the mission diligently while guaranteeing the mutual interests. Ultimately, IDRO will be paving the way for collaboration with other areas of the Iranian private sector. 20

21 Thanks for your attention 21