Iranian company ready to invest nearly $1 mln in construction of FEZ in Meghri on border with Iran

ArmInfo. Our company is ready to invest nearly $1 mln in construction of free economic zone in Meghri on the border with Iran, Representative of Iranian "Iran Khodro" car producing company in Armenia, Director of "Rena" LLC Reza Nafezi stated on the sidelines of Armenian-Iranian business meeting on January 27 in Yerevan.

Nafezi stated that the company is ready to invest in creating necessary infrastructures in the FEZ. In future, the company plans to organize joint production based on cheap Iranian raw materials and to export end product to the countries of Eurasian Economic Union and Georgia. "I mean joinery, production of furniture, construction materials and much more", he stated.

The representative of the Iranian company stated that they have experience of successful cooperation.  According to him Armenian ELBAT company, which offers a wide range of starter lead-acid storage accumulator batteries for all kinds of transport vehicles, faced difficult period. The company started cooperation with the Iranian side, which launched production in "Aras" FEZ on the border with Armenia. Currently the joint enterprise enjoys large tax benefits and has ensured its place on the Iranian market. "The Iranian side supplies the production with raw material from plumb, the product is assembled in Armenia, gets its final marketable style in "Aras" labeled "Made in Armenia" and is sold on the markets of Iran", he said.

At the same time Iran is ready to assist Armenia in establishing FEZ in Meghri on higher level. Chairman of the Board of Directors of Iranian FEZ "Aras" on the border with Armenia Mohsen Hadem Arab Bahi told journalists that on the current stage negotiations are being held with the Armenian side to create FEZ.  He recalled that Iran has a solid experience of FEZ management, particularly Aras FEZ was established nearly 10 years ago and as of today more than 4 thsd companies successfully operate in the zone.

To note, the cost f the program of establishing FEZ between Armenia and Iran is estimated at $28 mln, considering the operating expenses the total amount will make $32 mln. It is expected that in 10 years the income of the organizer company will total $52 mln, while the number of the employees of the organizer company of the free economic zone will total 60-70 people. According to forecasts 120 companies will be attracted in 10 years, which will export products amounting to $80-$100 mln annually. Aras Free Trade - Industrial Zone is located in the Northwest of Iran at the border point with neighboring Armenia and Azerbaijan. According to Iranian government's decree the total area of FEZ was increased to 51 thsd ha. Earlier the area of Aras totaled 9.7 thsd ha.  According to National Statistical Service of Armenia, the foreign trade turnover between Armenia and Iran in January-November 2016 totaled $219.3mln with a year-over-year decline of 13.4%.  In particular, export reduced by 6.1% to $70.2mln, while imports declined by 16.5% to $149.1mln.