Reuters (Istanbul) - Iranian carmaker Iran Khodro Company (IKCO) and Turkey's Hema Endüstri have signed a memorandum of agreement to jointly produce a car in Turkey, a Foreign Economic Relations Board (DEİK) statement said on Thursday.
According to DEİK's press bulletin, Turkey's Hattat Holding -- which owns Hema Endüstri -- CEO İbrahim Hattat said during a recent visit to Iran with President Abdullah Gül that the two companies will produce a joint automotive brand. Hattat also stated that in the first phase of the project the joint venture will manufacture cars and lightweight commercial vehicles. He added that the factory will be established in Turkey but that the definite location has not been decided. The DEİK statement said Hattat did not give any information on the amount of the investment. Khodro and Hattat Holding signed the cooperative agreement in Iran on Thursday.
The first step towards signing the memorandum of agreement between Khodro, the biggest carmaker in the Middle East, and Hema Endüstri was taken in September 2010. Khodro CEO Cevad Necmeddin told Reuters at the time that the investment was predicted to be around 200 million euros ($272 million).
Iranian Khodro has an annual manufacturing capacity of 800,000 units, while Turkish Hema Endüstri produces vehicle parts and tractors.
