Iran is in talks with Siemens Mobility to jointly produce parts used in manufacturing subway wagons, according to director of investment at Industrial Development and Renovation Organization (IDRO) of Iran.
Fardad Daliri announced that IDRO and the German-based Siemens Mobility are now discussing the joint production of propulsion systems, bogies, and traction motors to be used in making the wagons, reported Trend News Agency.
He noted that prior to this, Iranian railway developers would individually buy wagons from abroad, but the government has now developed an integrated system to meet their needs by relying on domestic production.
“These 10 cities are in need of €2 billion for subway wagons in the short run and there is also more need for investment in some nine or ten more cities in the long run, whose respective contracts will be signed in due course,” Daliri said.
In January 2017, the Parliament obliged the government to supply 2,000 subway wagons for the metro systems of 10 cities during the Sixth Five-Year Development Plan (2017-22). Shortly after, Interior Minister Abdolreza Rahmani Fazli said a contract had been signed to procure that number of wagons.
Last October, Germany’s Siemens signed a contract to upgrade Iran’s railway network.
Siemens said it will supply components for 50 diesel-electric locomotives to Iran. It did not disclose the value of the contract, but based on comparable deals, it could be in the low hundreds of millions of euros.
The German Economy Ministry said several firms from the Mittelstand, the small-to-medium-sized companies that form the backbone of the economy, had also signed deals with Iranian partners. These included SMS group, a builder of steelmaking plants, and INTRA industrial solutions.
In addition, Mitsubishi Germany has signed a contract to modernize a gas-fired plant, while plant constructor Keller HCW wants to build a brickyard in Iran, it said. Both countries’ central banks have also approved the technical cooperation.
Germany, whose commercial and cultural ties with Iran go back to the 19th century, was for decades a major trading partner of Tehran before the sanctions allowed China and several other nations to overtake it.